Registration No. 333-76154

& 811-7934

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933	x
Pre-Effective Amendment No.	¨
Post-Effective Amendment No. 8	x

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940	x
Amendment No. 25	x

THRIVENT VARIABLE ANNUITY ACCOUNT B

(Exact Name of Registrant)

THRIVENT FINANCIAL FOR LUTHERANS

(Name of Depositor)

625 Fourth Avenue South, Minneapolis, Minnesota 55415

(Address of Depositor’s Principal Executive Offices)

Depositor’s Telephone Number, including Area Code: (612) 844-7215

NAME AND ADDRESS OF AGENT FOR SERVICE

James M. Odland

625 Fourth Avenue South

Minneapolis, Minnesota 55415

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

¨ immediately upon filing pursuant to paragraph (b) of Rule 485

x on April 30, 2009 pursuant to paragraph (b) of Rule 485

¨ 60 days after filing pursuant to paragraph (a)(1) of Rule 485

¨ on (date) pursuant to paragraph (a)(1) of Rule 485

¨ 75 days after filing pursuant to paragraph (a)(2) of Rule 485

¨ on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:

¨ this post-effective amendment designates a new effective date for a previously filed post-effective amendment

TITLE OF SECURITIES BEING REGISTERED

Interest in a separate account under flexible premium deferred variable annuity contracts.

Flexible Premium Deferred

Variable Annuity

(issued by Lutheran Brotherhood

between 2/03/1994 and 4/30/2003)

Prospectuses

April 30, 2009

Thrivent Variable Annuity Account B

Thrivent Series Fund, Inc.

Thrivent.com

THRIVENT VARIABLE ANNUITY ACCOUNT B

PROSPECTUS

FOR

FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT

ISSUED BY THRIVENT FINANCIAL FOR LUTHERANS

Service Center:	Corporate Office:
4321 North Ballard Road	625 Fourth Avenue South
Appleton, WI 54919-0001	Minneapolis, MN 55415-1665
Telephone: 800-847-4836	Telephone: 800-847-4836
E-mail: mail@thrivent.com	E-mail: mail@thrivent.com
Facsimile: 800-225-2264

This Prospectus describes the individual flexible premium deferred variable annuity Contract (the “Contract”) which was issued by Thrivent Financial for Lutherans (“Thrivent Financial”, “we”, “us” or “our”). We are a fraternal benefit society organized under Wisconsin law. Even though we no longer issue new Contracts, the Contract Owner (“you”) may continue to allocate net premiums among investment alternatives with different investment objectives.

We allocate net premiums based on your designation to one or more Subaccounts of Thrivent Variable Annuity Account B (the “Variable Account”), and/or to the Fixed Account (which is the general account of ours, and which pays interest in an amount that is at least as great as the guaranteed fixed rate). The assets of each Subaccount will be invested solely in a corresponding Portfolio of Thrivent Series Fund, Inc. (the “Fund”), which is an open-end management investment company (commonly known as a “mutual fund”). We provide the overall investment management for each of the Portfolios, although some of the Portfolios are managed by an investment subadviser. The accompanying prospectus for the Fund describes the investment objectives and attendant risks of the following Portfolios:

Thrivent Aggressive Allocation Portfolio Thrivent Moderately Aggressive Allocation Portfolio Thrivent Moderate Allocation Portfolio Thrivent Moderately Conservative Allocation Portfolio Thrivent Technology Portfolio Thrivent Partner Healthcare Portfolio (subadvised by Sectoral Asset Management, Inc.) Thrivent Partner Natural Resources Portfolio (subadvised by BlackRock Investment Management, LLC) Thrivent Partner Emerging Markets Portfolio (subadvised by Aberdeen Asset Management Investment Services Limited) Thrivent Real Estate Securities Portfolio Thrivent Partner Utilities Portfolio (subadvised by BlackRock Investment Management, LLC) Thrivent Partner Small Cap Growth Portfolio (subadvised by Turner Investment Partners, Inc.) Thrivent Partner Small Cap Value Portfolio (subadvised by T. Rowe Price Associates, Inc.) Thrivent Small Cap Stock Portfolio Thrivent Small Cap Index Portfolio Thrivent Mid Cap Growth Portfolio II Thrivent Mid Cap Growth Portfolio Thrivent Partner Mid Cap Value Portfolio (subadvised by Goldman Sachs Asset Management, L.P.) Thrivent Mid Cap Stock Portfolio Thrivent Mid Cap Index Portfolio Thrivent Partner Worldwide Allocation Portfolio (subadvised by Aberdeen Asset Management Investment Services Limited, Goldman Sachs Asset Management, L.P., Mercator Asset Management, LP, Principal Global Investors, LLC, and Victory Capital Management Inc.) Thrivent Partner International Stock Portfolio (subadvised by Mercator Asset Management, LP and Principal Global Investors, LLC) Thrivent Partner Socially Responsible Stock Portfolio (subadvised by Calvert Asset Management Company, Inc. and Atlanta Capital Management Company, L.L.C.) Thrivent Partner All Cap Growth Portfolio (subadvised by Calamos Advisors LLC) Thrivent Partner All Cap Value Portfolio (subadvised by OppenheimerFunds, Inc.) Thrivent Partner All Cap Portfolio (subadvised by Pyramis Global Advisors, LLC) Thrivent Large Cap Growth Portfolio II Thrivent Large Cap Growth Portfolio Thrivent Partner Growth Stock Portfolio (subadvised by T. Rowe Price Associates, Inc.) Thrivent Large Cap Value Portfolio Thrivent Large Cap Stock Portfolio Thrivent Large Cap Index Portfolio Thrivent Equity Income Plus Portfolio Thrivent Balanced Portfolio Thrivent High Yield Portfolio Thrivent Diversified Income Plus Portfolio Thrivent Partner Socially Responsible Bond Portfolio (subadvised by Calvert Asset Management Company, Inc.) Thrivent Income Portfolio Thrivent Bond Index Portfolio Thrivent Limited Maturity Bond Portfolio Thrivent Mortgage Securities Portfolio Thrivent Money Market Portfolio

Additional information about us, the Contract and the Variable Account is contained in a Statement of Additional Information (“SAI”) dated April 30, 2009. That SAI was filed with the Securities and Exchange Commission and is

incorporated by reference in this Prospectus. You may obtain a copy of the SAI and all other documents required to be filed with the SEC without charge by calling us at 1-800-THRIVENT (1-800-847-4386), going online at thrivent.com, or by writing to us at Thrivent Financial for Lutherans, 4321 North Ballard Road, Appleton, Wisconsin, 54919-0001. In addition, the Securities and Exchange Commission maintains a Web site (http://www.sec.gov) that contains the SAI and all other documents required to be filed with the SEC. The Table of Contents for the SAI may be found on Page 38 of this Prospectus. Definitions of special terms used in this Prospectus follows the Table of Contents.

An investment in the Contract is not a deposit of a bank or financial institution and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Contract involves investment risk including the possible loss of principal.

The Securities and Exchange Commission has not approved or disapproved these securities or determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

This Prospectus sets forth concisely the information about the Contract that a prospective investor ought to know before investing, and should be read and kept for future reference. It is valid only when accompanied or proceeded by the current prospectus of Thrivent Series Fund, Inc.

The date of this Prospectus is April 30, 2009.

TABLE OF CONTENTS

Definitions	5
Fee and Expense Tables	6
Summary	8
The Contract	8
Annuity Provisions	8
Exchange Program	8
Federal Tax Status	8
Condensed Financial Information	8
Thrivent Financial and the Variable Account	9
Thrivent Financial	9
The Variable Account	9
Investment Options	10
Variable Investment Options and the Subaccounts	10
Investment Management	15
Addition, Deletion, Combination, or Substitution of Investments	15
Fixed Account	16
Risks	16
The Contract	17
Allocation of Premium	17
Accumulated Value of Your Contract	17
Subaccount Valuation	17
Net Investment Factor	18
Minimum Accumulated Value	18
Death Benefit Before the Annuity Commencement Date	18
Death Benefit After the Annuity Commencement Date	19
Surrender	19
Transfers	21
Abusive Trading Policies and Monitoring Processes	21
Dollar Cost Averaging	22
Asset Rebalancing	22
Telephone and Online Transactions	22
Timely Processing	23
Assignments	23
Contract Owner, Beneficiaries and Annuitants	24
Charges and Deductions	24
Surrender Charge (Contingent Deferred Sales Charge)	24
Administrative Charge	25
Mortality and Expense Risk Charge	25
Expenses of the Fund	25
Taxes	26
Sufficiency of Charges	26
Annuity Provisions	26
Annuity Commencement Date	26
Annuity Proceeds	26
Settlement Options	26
Frequency of Annuity Payments	27

3

Amount of Variable Annuity Payments	27
Subaccount Annuity Unit Value	27
General Provisions	28
Entire Contract	28
Postponement of Payments	28
Purchase Payments	28
Date of Receipt	28
Anti-Money Laundering	28
Maintenance of Solvency	29
Reports to Contract Owners	29
State Variations	29
Gender Neutral Benefits	29
Contract Inquiries	29
Federal Tax Status	30
General	30
Tax Status of the Variable Account	30
Taxation of Annuities in General	30
Tax Deferral During Accumulation Period	30
Taxation of Partial and Full Surrenders	31
Taxation of Annuity Income Payments	31
Tax Treatment of Death Benefit	32
Assignments, Pledges, and Gratuitous Transfers	32
Penalty Tax on Premature Distributions	32
Special Hurricane-Related Relief for Qualified Plans	32
Aggregation of Contracts	33
Exchanges of Annuity Contracts	33
Qualified Plans	33
Direct Rollovers	34
Federal Income Tax Withholding	34
Voting Rights	35
Sales and Other Agreements	36
Legal Proceedings	37
Financial Statements	37
Statement of Additional Information	38
Table of Contents	38
Order Form	38
Appendix A—Condensed Financial Information	39

4

DEFINITIONS

Accumulated Value. The sum of the accumulated values for your Contract in Subaccounts and the Fixed Account on or before the Annuity Commencement Date.

Annuitant. The person(s) named in the Contract whose life is used to determine the duration of annuity payments involving life contingencies.

Annuity Commencement Date. The date when Annuity Income payments will begin if an Annuitant is living on that date.

Annuity Unit. A unit of measure which is used in the calculation of the second and each subsequent variable annuity payment.

Commuted Value. The amount expressed as a lump sum payment which represents the present value of the future payments for the remaining guaranteed period.

Contract. The individual flexible premium variable annuity Contract offered by Thrivent Financial and described in this Prospectus.

Contract Anniversary. The same date in each succeeding year as the Date of Issue of the Contract.

Contract Owner. The person who controls all the rights under the Contract while the Annuitant is alive. The Annuitant is the Contract Owner, unless another owner is named in the Contract application.

Contract Year. The period from one Contract Anniversary to the next. The first Contract Year will be the period beginning on the Date of Issue of the Contract and ending on the first Contract Anniversary.

Fixed Account. The Fixed Account is the general account of Thrivent Financial, which consists of all assets of Thrivent Financial other than those allocated to a separate account of Thrivent Financial. Premium payments allocated to the Fixed Account will be paid a fixed rate of interest (which may not be less than 3.0%) declared by Thrivent Financial at least annually. Amounts accumulated in the Fixed Account are guaranteed by Thrivent Financial.

Fund. Thrivent Series Fund, Inc., which is described in the accompanying prospectus.

Medallion Signature Guarantee. A stamp provided by a financial institution that verifies your signature. An eligible guarantor institution, such as a national bank, brokerage firm, commercial bank, trust company, credit union, or savings association participating in the Medallion Signature Guarantee Program provides that service.

Portfolio. A Portfolio of the Fund. Each Subaccount invests exclusively in the shares of a corresponding Portfolio of the Fund.

Qualified Plan. A retirement plan that receives favorable tax treatment under Section 401, 403, 408, 408A or similar provisions of the Internal Revenue Code.

Service Center. Thrivent Financial for Lutherans, 4321 North Ballard Road, Appleton, Wisconsin 54919-0001, telephone, 1-800-THRIVENT (1-800-847-4836), or such other office as we may specify in a notice to the Contract Owner.

Subaccount. A subdivision of the Variable Account. Each Subaccount invests exclusively in the shares of a corresponding Portfolio of the Fund.

Valuation Day. Each day the New York Stock Exchange is open for trading. The Valuation Day ends at the close of regular trading on the New York Stock Exchange, usually 4:00 p.m. Eastern Time.

Valuation Period. The period commencing at the close of business of a Valuation Date and ending at the close of business of the next Valuation Date.

Variable Account. Thrivent Variable Annuity Account B, which is a separate account of Thrivent Financial. The Subaccounts are subdivisions of the Variable Account.

Written Notice. A written request or notice provided by the Contract Owner and received in good order at our Service Center.

5

FEE AND EXPENSE TABLES

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. For a complete discussion of Contract fees and expenses, see Charges and Deductions.

The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract, or transfer cash value between investment options. You pay no sales charge when you make additional investments in the Contract. No state premium taxes are deducted.

Contract Owner Transaction Expenses
Sales Load Imposed on Purchase (as a percentage of purchase payments)	0%
Maximum Deferred Sales Load (as a percentage of excess amount surrendered)	6.00%1
Transfer Charge (after 12 free transfers per Contract Year)	0%

The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Fund fees and expenses.

Annual Contract Fee		$	30.002
Annual Subaccount Expenses (as a percentage of average daily Accumulated Value or Annuity Unit Value)
	Current3	Maximum
Mortality & Expense Risk Charge	1.10%		1.25%
Total Subaccount Annual Expenses	1.10%		1.25%

The next table shows the minimum and maximum Total Annual Portfolio Operating Expenses charged by the Portfolios that you pay indirectly during the time you own the Contract. This table shows the range (minimum and maximum) of fees and expenses (including management fees and other expenses) charged by any of the Portfolios, expressed as an annual percentage of average daily net assets. The amounts are based on the arithmetic average of expenses paid in the year ended December 31, 2008, for all of the available Portfolios, adjusted to reflect anticipated changes in fees and expenses. With respect to new Portfolios, amounts are based on estimates for the current fiscal year. The amounts shown reflect expenses before any applicable expense reimbursement or fee waiver.

Total Annual Portfolio Operating Expenses4
	Minimum	Maximum
(expenses that are deducted from the Portfolio assets, including management fees and other expenses)	0.39%	2.80%

Each Subaccount of the Variable Account purchases shares of the corresponding Fund Portfolio at net asset value. The net asset value reflects the investment advisory fees and other expenses that are deducted from the assets of the Portfolio. The advisory fees and other expenses are not fixed or specified under the terms of the Contract, and they may vary from year to year. More detail concerning the fees and expenses of the Portfolios is contained in the prospectus for the Fund.

If a Portfolio is structured as a “fund of funds,” total gross annual Portfolio expenses also include the fees associated with the Portfolios in which it invests. Because of this a Portfolio that is structured as a “fund of funds” may have higher fees and expenses than a Portfolio that invests directly in debt and equity securities. For a list of the “fund of funds” Portfolios available through the Contract, see the chart of portfolios available in the prospectus for the Fund.

6

See Annuity Provisions in this prospectus for a discussion of these other charges.

Example

The following examples are intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include Contract Owner transaction expenses, Contract fees, separate account annual expenses, and Portfolio fees and expenses. The following example assumes that you invest $10,000 in the Contract for the time periods indicated and that your investment has a 5% return each year and assumes both the minimum and the maximum fees and expenses of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

	Years
	1		3		5		10
If you surrender your Contract at the end of the applicable time period with
Minimum Portfolio Expenses:	$	725	$	916	$	1,106	$	1,947
Maximum Portfolio Expenses:	$	952	$	1,604	$	2,264	$	4,251
If you annuitize your Contract at the end of the applicable time period with
Minimum Portfolio Expenses:	$	725	$	916	$	894	$	1,947
Maximum Portfolio Expenses:	$	952	$	1,604	$	2,075	$	4,251
If you do not surrender your Contract at end of the applicable time period with
Minimum Portfolio Expenses:	$	167	$	518	$	894	$	1,947
Maximum Portfolio Expenses:	$	407	$	1,233	$	2,075	$	4,251

For more information, see Charges and Deductions in this prospectus and the prospectus for the Fund.

Notes to Fee and Expense Tables:

¹ In each Contract Year, you may surrender without a surrender charge up to 10% of the Accumulated Value existing at the time the first surrender is made in a Contract Year; only the amount in excess of that amount (the “Excess Amount”) will be subject to a surrender charge. A surrender charge is deducted if a full or partial surrender occurs during the first six Contract Years. The surrender charge is 6% during the first Contract Year and decreases by 1% each subsequent Contract Year. No surrender charge is deducted for surrenders occurring in Contract Years seven and later. The surrender charge also will be deducted if the annuity payments begin during the first six Contract Years, except under certain circumstances as described in Surrender Charge (Contingent Deferred Sales Charge).

² A $30 annual administrative charge is deducted on each Contract Anniversary only if, on that Contract Anniversary, the total of premiums paid under the Contract minus all prior surrenders is less than $5,000 and the Accumulated Value is less than $5,000. The $30 fee is a Contract charge and is deducted proportionately from the Subaccounts and the Fixed Account that make up the Contract’s Accumulated Value.

³ The current charge for mortality and expense risk fees is equal to an annual rate of 1.10%, and we guarantee that this charge will never exceed an annual rate of 1.25%. See Charges and Deductions—Mortality and Expense Risk Charge. A contract pending payout due to a death claim is charged based on the average daily net assets of the Variable Account and is equal to an annual rate of 0.95%.

⁴ Thrivent Financial has agreed to reimburse certain expenses other than the advisory fees for certain of the Portfolios. After taking these contractual and voluntary arrangements into account, the range (minimum and maximum) of total operating expenses charged by the Portfolios would have been 0.36% to 1.50%. The reimbursements may be discontinued at any time.

7

SUMMARY

Please see Definitions at the beginning of this Prospectus for definitions of several technical terms, which can help you understand details about your Contract. The Summary is an introduction to various topics related to the Contract. For more detailed information on each subject, refer to the appropriate section of this Prospectus.

The Contract

Allocation of Premiums. You may allocate premiums under the Contract to one or more of the Subaccounts of the Variable Account and to the Fixed Account. Some of the Subaccounts may be unavailable in some states.

The Accumulated Value of the Contract in the Subaccounts and, except to the extent fixed amount annuity payments have been elected, the amount of annuity payments will vary, primarily based on the investment experience of the Portfolios whose shares are held in the Subaccounts designated. Premiums allocated to the Fixed Account will accumulate at fixed rates of interest declared by us, and will never be less than an effective rate of 3% per year.

Premiums will be allocated among the Subaccounts and the Fixed Account according to your allocation instructions, at the end of the Valuation Period in which we receive the premium.

Surrenders. If a Written Notice from you requesting a surrender is received on or before the Annuity Commencement Date, we will pay to you all or part of the Accumulated Value of a Contract after deducting any applicable surrender charge. Partial surrenders must be for at least $200, and may be requested only if the remaining Accumulated Value is not less than $1,000. Under certain circumstances the Contract Owner may make surrenders after the Annuity Commencement Date.

Transfers. On or before the Annuity Commencement Date, you may request the transfer of all or a part of your Contract’s Accumulated Value to other Subaccounts or to the Fixed Account. The total amount transferred each time must be at least $200 (unless the total value in the Subaccount or the Fixed Account is less than $200, in which case the entire amount may be transferred). We reserve the right to limit the number of transfers in any Contract Year, although we will always allow at least 12 transfers a year. With respect to the Fixed Account, transfers out of the Fixed Account are limited to only one each Contract Year and must be made on or within 45 days after a Contract Anniversary before the end of the valuation day.

Annuity Provisions

You may select an annuity settlement option or options, and you may select whether payments are to be made on a fixed or variable (or a combination of fixed and variable) basis. See Annuity Provisions for more detail.

Exchange Program

From time to time, we may offer to exchange this variable annuity contract for the Flexible Premium Deferred Variable Annuity Contract (of the Thrivent Variable Account I). Such exchange offers will be made available only for contracts that have not yet started making annuity payments. Any new contract resulting from such exchange will have the same Issue Date as the Contract being exchanged only for purposes of calculating surrender charges, if applicable.

Federal Tax Status

For a description of the Federal income tax status of annuities, see Federal Tax Status. Generally, a distribution from a Contract before the taxpayer attains age 59 ¹/2 will result in a penalty tax of 10% of the amount of the distribution which is included in gross income. Death proceeds paid to beneficiaries are also subject to income tax.

Condensed Financial Information

Condensed financial information derived from the financial statements of the Variable Account is contained in Appendix A.

8

THRIVENT FINANCIAL AND THE VARIABLE ACCOUNT

Thrivent Financial

We are a fraternal benefit society owned by and operated for our members. We were organized in 1902 under Wisconsin law, and we are in compliance with Internal Revenue Code Section 501(c)(8). We are currently licensed to transact life insurance business in all 50 states and the District of Columbia.

We are subject to regulation by the Office of the Commissioner of Insurance of the State of Wisconsin as well as by the insurance regulators of all the other states and jurisdictions in which we do business. We submit annual reports on our operations and finances to insurance officials in such states and jurisdictions. The forms of Contracts described in this Prospectus are filed with and (where required) approved by insurance officials in each state and jurisdiction in which Contracts are sold. We are also subject to certain Federal securities laws and regulations.

The Variable Account

The Variable Account is a separate account of ours, which was established in 1993. The Variable Account meets the definition of a “separate account” under the federal securities laws. We have caused the Variable Account to be registered with the Securities and Exchange Commission (the “SEC”) as a unit investment trust under the Investment Company Act of 1940 (the “1940 Act”). This registration does not involve supervision by the SEC of the management or investment policies or practices.

We own the assets of the Variable Account, and we are not a trustee with respect to such assets. However, the Wisconsin laws under which the Variable Account is operated provide that the Variable Account shall not be chargeable with liabilities arising out of any other business we may conduct. The Variable Account will be fully funded at all times for the purposes of federal securities laws. We may transfer to our general account assets of the Variable Account which exceed the reserves and other liabilities of the Variable Account.

Income and realized and unrealized gains and losses from each Subaccount of the Variable Account are credited to or charged against that Subaccount without regard to any of our other income, gains or losses. We may accumulate in the Variable Account the charge for expense and mortality risk, mortality gains and losses and investment results applicable to those assets that are in excess of net assets supporting the Contracts.

9

INVESTMENT OPTIONS

Variable Investment Options and the Subaccounts

You may allocate the premiums paid under the Contract and transfer from the Contract’s Accumulated Value to up to 40 of the Subaccounts of the Variable Account. We invest the assets of each Subaccount in corresponding Portfolios of the Funds. The Subaccounts and corresponding Portfolios are:

Subaccount	Corresponding Portfolio
Thrivent Aggressive Allocation Subaccount	Thrivent Aggressive Allocation Portfolio
Thrivent Moderately Aggressive Allocation Subaccount	Thrivent Moderately Aggressive Allocation Portfolio
Thrivent Moderate Allocation Subaccount	Thrivent Moderate Allocation Portfolio
Thrivent Moderately Conservative Allocation Subaccount	Thrivent Moderately Conservative Allocation Portfolio
Thrivent Technology Subaccount	Thrivent Technology Portfolio
Thrivent Partner Healthcare Subaccount	Thrivent Partner Healthcare Portfolio
Thrivent Partner Natural Resources Subaccount	Thrivent Partner Natural Resources Portfolio
Thrivent Partner Emerging Markets Subaccount	Thrivent Partner Emerging Markets Portfolio
Thrivent Real Estate Securities Subaccount	Thrivent Real Estate Securities Portfolio
Thrivent Partner Utilities Subaccount	Thrivent Partner Utilities Portfolio
Thrivent Partner Small Cap Growth Subaccount	Thrivent Partner Small Cap Growth Portfolio
Thrivent Partner Small Cap Value Subaccount	Thrivent Partner Small Cap Value Portfolio
Thrivent Small Cap Stock Subaccount	Thrivent Small Cap Stock Portfolio
Thrivent Small Cap Index Subaccount	Thrivent Small Cap Index Portfolio
Thrivent Mid Cap Growth Subaccount II	Thrivent Mid Cap Growth Portfolio II
Thrivent Mid Cap Growth Subaccount	Thrivent Mid Cap Growth Portfolio
Thrivent Partner Mid Cap Value Subaccount	Thrivent Partner Mid Cap Value Portfolio
Thrivent Mid Cap Stock Subaccount	Thrivent Mid Cap Stock Portfolio
Thrivent Mid Cap Index Subaccount	Thrivent Mid Cap Index Portfolio
Thrivent Partner Worldwide Allocation Subaccount	Thrivent Partner Worldwide Allocation Portfolio
Thrivent Partner International Stock Subaccount	Thrivent Partner International Stock Portfolio
Thrivent Partner Socially Responsible Stock Subaccount	Thrivent Partner Socially Responsible Stock Portfolio
Thrivent Partner All Cap Growth Subaccount	Thrivent Partner All Cap Growth Portfolio
Thrivent Partner All Cap Value Subaccount	Thrivent Partner All Cap Value Portfolio
Thrivent Partner All Cap Subaccount	Thrivent Partner All Cap Portfolio
Thrivent Large Cap Growth Subaccount II	Thrivent Large Cap Growth Portfolio II
Thrivent Large Cap Growth Subaccount	Thrivent Large Cap Growth Portfolio
Thrivent Partner Growth Stock Subaccount	Thrivent Partner Growth Stock Portfolio
Thrivent Large Cap Value Subaccount	Thrivent Large Cap Value Portfolio
Thrivent Large Cap Stock Subaccount	Thrivent Large Cap Stock Portfolio
Thrivent Large Cap Index Subaccount	Thrivent Large Cap Index Portfolio
Thrivent Equity Income Plus Subaccount	Thrivent Equity Income Plus Portfolio
Thrivent Balanced Subaccount	Thrivent Balanced Portfolio
Thrivent High Yield Subaccount	Thrivent High Yield Portfolio
Thrivent Diversified Income Plus Subaccount	Thrivent Diversified Income Plus Portfolio
Thrivent Partner Socially Responsible Bond Subaccount	Thrivent Partner Socially Responsible Bond Portfolio
Thrivent Income Subaccount	Thrivent Income Portfolio
Thrivent Bond Index Subaccount	Thrivent Bond Index Portfolio
Thrivent Limited Maturity Bond Subaccount	Thrivent Limited Maturity Bond Portfolio
Thrivent Mortgage Securities Subaccount	Thrivent Mortgage Securities Portfolio
Thrivent Money Market Subaccount	Thrivent Money Market Portfolio

10

INVESTMENT OPTIONS

Each of the Portfolios has an investment objective as described below:

Thrivent Aggressive Allocation Portfolio. To seek long-term capital growth by implementing an asset allocation strategy.

Thrivent Moderately Aggressive Allocation Portfolio. To seek long-term capital growth by implementing an asset allocation strategy.

Thrivent Moderate Allocation Portfolio. To seek long-term capital growth while providing reasonable stability of principal by implementing an asset allocation strategy.

Thrivent Moderately Conservative Allocation Portfolio. To seek long-term capital growth while providing reasonable stability of principal by implementing an asset allocation strategy.

Thrivent Technology Portfolio. To seek long-term capital appreciation by investing primarily in a diversified portfolio of common stocks and securities convertible into common stocks.

Thrivent Partner Healthcare Portfolio. To seek long-term capital growth.

Thrivent Partner Natural Resources Portfolio. To seek long-term capital growth.

Thrivent Partner Emerging Markets Portfolio. To seek long-term capital growth.

Thrivent Real Estate Securities Portfolio. To seek to provide long-term capital appreciation and high current income by investing primarily in the equity securities of companies in the real estate industry.

Thrivent Partner Utilities Portfolio. To seek capital appreciation and current income.

Thrivent Partner Small Cap Growth Portfolio. To achieve long-term capital growth by investing primarily in a diversified portfolio of common stocks of U.S. small capitalization companies.

Thrivent Partner Small Cap Value Portfolio. To seek long-term growth of capital by investing primarily in a professionally managed diversified portfolio of smaller capitalization common stocks and securities convertible into small company common stocks.

Thrivent Small Cap Stock Portfolio. To seek long-term capital growth by investing primarily in small company common stocks and securities convertible into small company common stock.

Thrivent Small Cap Index Portfolio. To strive for capital growth that tracks the performance of the S&P SmallCap 600 Index* by investing primarily in common stocks of the Index.

Thrivent Mid Cap Growth Portfolio II. To achieve long-term growth of capital by investing primarily in a diversified portfolio of common stocks of companies with medium market capitalizations.

Thrivent Mid Cap Growth Portfolio. To achieve long-term growth of capital by investing primarily in a professionally managed diversified portfolio of common stocks of companies with medium market capitalizations.

Thrivent Partner Mid Cap Value Portfolio. To achieve long-term growth of capital.

Thrivent Mid Cap Stock Portfolio. To seek long-term capital growth by investing primarily in common stocks and securities convertible into common stocks of mid-sized companies.

11

INVESTMENT OPTIONS

Thrivent Mid Cap Index Portfolio. To seek total returns that track the performance of the S&P MidCap 400 Index* by investing primarily in common stocks comprising the Index.

Thrivent Partner Worldwide Allocation Portfolio. To seek long-term capital growth.

Thrivent Partner International Stock Portfolio. To strive for long-term capital growth by investing primarily in a professionally managed diversified portfolio of common stocks of established, non-U.S. companies.

Thrivent Partner Socially Responsible Stock Portfolio. To seek long-term capital growth.

Thrivent Partner All Cap Growth Portfolio. To seek long-term capital growth.

Thrivent Partner All Cap Value Portfolio. To seek long-term capital growth.

Thrivent Partner All Cap Portfolio. To seek long-term growth of capital.

Thrivent Large Cap Growth Portfolio II. To achieve long-term growth of capital and future income by investing primarily in a diversified portfolio of common stocks of companies that appear to offer better than average long-term growth potential.

Thrivent Large Cap Growth Portfolio. To achieve long-term growth of capital through investment primarily in common stocks of established corporations that appear to offer attractive prospects of a high total return from dividends and capital appreciation.

Thrivent Partner Growth Stock Portfolio. To achieve long-term growth of capital and, secondarily, increase dividend income by investing primarily in a diversified portfolio of common stocks of well established growth companies.

Thrivent Large Cap Value Portfolio. To achieve long-term growth of capital.

Thrivent Large Cap Stock Portfolio. To seek long-term capital growth by investing primarily in a diversified portfolio of common stocks and securities convertible into common stocks.

Thrivent Large Cap Index Portfolio. To seek total returns that track the performance of the S&P 500* Index by investing primarily in common stocks of the Index.

Thrivent Equity Income Plus Portfolio. To seek income plus long-term capital growth.

Thrivent Balanced Portfolio. To seek long-term total return through a balance between income and the potential for long-term capital growth by investing primarily in a diversified portfolio of common stocks, bonds and money market instruments.

Thrivent High Yield Portfolio. To achieve a higher level of income through investment in a diversified portfolio of high yield securities (“junk bonds”) which involve greater risks than higher quality investments, while also considering growth of capital as a secondary objective.

Thrivent Diversified Income Plus Portfolio. To seek to maximize income while maintaining prospects for capital appreciation by investing primarily in a diversified portfolio of income-producing securities.

Thrivent Partner Socially Responsible Bond Portfolio. To seek to maximize income.

Thrivent Income Portfolio. To achieve a high level of income over the longer term while providing reasonable safety of capital through investment primarily in readily marketable intermediate and long-term fixed income securities.

12

INVESTMENT OPTIONS

Thrivent Bond Index Portfolio. To strive for investment results similar to the total return of the Barclays Capital Aggregate Bond Index by investing primarily in bonds and other debt securities included in the Index.

Thrivent Limited Maturity Bond Portfolio. To seek a high level of current income consistent with stability of principal.

Thrivent Mortgage Securities Portfolio. To seek a combination of current income and long-term capital appreciation by investing primarily in a diversified portfolio of debt securities backed by pools of residential and/or commercial mortgages.

Thrivent Money Market Portfolio. To achieve the maximum current income that is consistent with stability of capital and maintenance of liquidity through investment in high-quality, short-term debt obligations.

* “Standard & Poor’s^®”, “S&P^®”, “Standard & Poor’s 500”, “500”, “Standard & Poor’s SmallCap 600 Index”, “S&P SmallCap 600 Index”, “Standard & Poor’s MidCap 400 Index” and “S&P MidCap 400 Index” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by us. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the product. (Please see the Statement of Additional Information of the Fund, which sets forth certain additional disclaimers and limitations of liabilities on behalf of S&P.)

13

INVESTMENT OPTIONS

We cannot assure that the Portfolios will achieve their respective investment objectives. You should periodically evaluate your allocation among the Subaccounts in light of current market conditions and the investment risks associated with investing in the various Portfolios of the Fund. A full description of the Portfolios, their investment objectives, policies, expenses, and risks and other aspects of the Fund’s operations is contained in the accompanying prospectus for the Fund, which should be carefully read in conjunction with this Prospectus.

Shares of the Fund are sold to other Portfolios of the Fund, other insurance company separate accounts of ours and of our wholly owned subsidiary, Thrivent Life Insurance Company (“Thrivent Life”), and to retirement plans that we sponsor. The Fund may, in the future, create new Portfolios. It is conceivable that in the future it may be disadvantageous for both variable annuity separate accounts and variable life insurance separate accounts and for Thrivent Life and us to invest simultaneously in the Fund, although we do not foresee any such disadvantages to either variable annuity or variable life insurance Contract Owners. The Fund’s management intends to monitor events in order to identify any material conflicts between such Contract Owners and to determine what action, if any, should be taken in response. Material conflicts could result from, for example:

¨ Changes in state insurance laws

¨ Changes in Federal income tax law

¨ Changes in the investment management of the Fund

¨ Differences in voting instructions between those given by the Contract Owners from the different separate accounts

If we believe the response of the Fund to any of those events or conflicts insufficiently protects Contract Owners, we may take appropriate action on our own. Such action could include the sale of Fund shares by one or more of the separate accounts, which could have adverse consequences.

The Fund is registered with the SEC under the 1940 Act as an open-end management investment company (commonly called a “mutual fund”). That registration does not involve supervision by the SEC of the management or investment practices or policies of the Fund.

The Variable Account will purchase and redeem shares from the Fund at net asset value. Shares will be redeemed to the extent necessary for us to collect charges under the Contracts, to make payments upon surrenders, to provide benefits under the Contracts, or to transfer assets from one Subaccount to another as requested by Contract Owners. Any dividend or capital gain distribution received from a Portfolio of the Fund will be reinvested immediately at net asset value in shares of that Portfolio and retained as assets of the corresponding Subaccount.

14

INVESTMENT OPTIONS

Investment Management

We act as investment adviser for the Portfolios of the Fund, and we are a registered investment adviser under the Investment Advisers Act of 1940. We and the Fund have engaged the following investment subadvisers:

Subadviser	Portfolio Name
Sectoral Asset Management, Inc.	Thrivent Partner Healthcare Portfolio
BlackRock Investment Management, LLC	Thrivent Partner Natural Resources Portfolio
Aberdeen Asset Management Investment Services Limited	Thrivent Partner Emerging Markets Portfolio
BlackRock Investment Management, LLC	Thrivent Partner Utilities Portfolio
Turner Investment Partners, Inc.	Thrivent Partner Small Cap Growth Portfolio
T. Rowe Price Associates, Inc.	Thrivent Partner Small Cap Value Portfolio
Goldman Sachs Asset Management, L.P.	Thrivent Partner Mid Cap Value Portfolio
Aberdeen Asset Management Investment Services Limited, Goldman Sachs Asset Management, L.P., Mercator Asset Management, LP, Principal Global Investors, LLC, and Victory Capital Management Inc.	Thrivent Partner Worldwide Allocation Portfolio
Mercator Asset Management, LP and Principal Global Investors, LLC	Thrivent Partner International Stock Portfolio
Calvert Asset Management Company, Inc. and Atlanta Capital Management Company, L.L.C.	Thrivent Partner Socially Responsible Stock Portfolio
Calamos Advisors LLC	Thrivent Partner All Cap Growth Portfolio
OppenheimerFunds, Inc.	Thrivent Partner All Cap Value Portfolio
Pyramis Global Advisors, LLC	Thrivent Partner All Cap Portfolio
T. Rowe Price Associates, Inc.	Thrivent Partner Growth Stock Portfolio
Calvert Asset Management Company, Inc.	Thrivent Partner Socially Responsible Bond Portfolio

The Fund pays each of the above Subadvisers an annual fee for subadvisory services. Subadvisory fees are described fully in the Statement of Additional Information for the Fund.

Addition, Deletion, Combination, or Substitution of Investments

We reserve the right, subject to applicable law, to make additions to, deletions from, or substitutions for the shares that are held in the Variable Account or that the Variable Account may purchase. If Portfolio shares of the Fund are no longer available for investment or if in our judgment further investment in any Portfolio should become inappropriate in view of the purposes of the Variable Account, we may redeem the shares, if any, of that Portfolio and substitute shares of another registered open-end management company. We will not substitute any shares attributable to a Contract interest in a Subaccount of the Variable Account without notice and prior approval of the SEC and state insurance authorities, to the extent required by applicable law.

We also reserve the right to establish additional Subaccounts of the Variable Account, each of which would invest in shares corresponding to a new Portfolio of the Fund or in shares of another investment company having a specified investment objective. Subject to applicable law and any required SEC approval, we may, in our sole discretion, establish new Subaccounts, combine two or more Subaccounts, or eliminate one or more Subaccounts if marketing needs, tax considerations or investment conditions warrant. Any new Subaccounts may be made available to existing Contract Owners on a basis to be determined by us.

15

INVESTMENT OPTIONS

If we deem it to be in the best interest of Contract Owners and Annuitants, and subject to any approvals that may be required under applicable law, the Variable Account may be operated as a management company under the 1940 Act, it may be deregistered under that Act if registration is no longer required, or it may be combined with other separate accounts of ours.

Fixed Account

On or before the Annuity Commencement Date, you may allocate the premiums paid under the Contract and transfers from the Subaccounts to the Fixed Account. After the Annuity Commencement Date, you may no longer transfer out of the Fixed Account. Any amounts allocated to the Fixed Account are invested with our general account assets. Interest will be credited on premiums allocated to the Fixed Account and on amounts transferred to the Fixed Account from the date of allocation or transfer. The initial interest rate for each such allocation or transfer is guaranteed for 12 months, and subsequent interest rates will not change more frequently than every 12 months. Interest will be compounded daily and will never be less than an effective annual interest rate of 3% per year.

Because of exemptive and exclusionary provisions, interests in the Fixed Account have not been registered under the Securities Act of 1933 (“1933 Act”), and the Fixed Account has not been registered as an investment company under the Investment Company Act of 1940 (“1940 Act”). Accordingly neither the Fixed Account, nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures regarding the Fixed Account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements in prospectuses. We have been advised that the staff of the Securities and Exchange Commission has not reviewed disclosure relating to the Fixed Account.

Contract Owners have no voting rights in the Variable Account with respect to Fixed Account values.

RISKS

This annuity has some risks which may include the following:

¨ The investment options you choose may lose value, and the Accumulated Value of your contract can go down;

¨ In addition to taxes on gain, there may be a tax penalty if you withdraw money from the annuity prior to age 59 ¹/2;

¨ If you elect a Settlement Option, you will only receive periodic annuity payments as frequently as you selected. There is a risk that your annuity payments will not keep pace with your personal expenses. If you choose a life income with no guaranteed period, there is a risk that you will die prematurely and no death proceeds will be paid to your beneficiaries.

16

THE CONTRACT

Allocation of Premium

We will allocate the premiums among the Subaccount(s) and/or the Fixed Account according to the instructions you provided in your application for the Contract or subsequently. We reserve the right to limit the number of allocations to subaccounts to no more than 40. The allocation percentages which you select must be in whole numbers and their sum must be 100%. We reserve the right to adjust allocation percentages to eliminate fractional percentages. Premiums which you pay are allocated at the end of the Valuation Period in which we receive them using the allocation percentages you have specified. You may change the allocation percentages for future premiums without charge and at any time by giving us Written Notice or, if you have completed the telephone transaction authorization form, by telephone. Any change will apply to all future premiums unless you request another change.

The values in the Subaccounts of the Variable Account will vary with the investment experience of the corresponding Portfolios. You bear the entire investment risk of the amounts allocated to Subaccounts of the Variable Account. You should periodically review your allocations of premiums in light of market conditions and your overall financial objectives.

Accumulated Value of Your Contract

On or before the Annuity Commencement Date, your Contract’s value is expressed as its Accumulated Value. Your Contract’s Accumulated Value is the sum of the accumulated values in Subaccounts and the Fixed Account.

Your Contract’s Accumulated Value will reflect the investment experience of the chosen Subaccounts, any amount of value in the Fixed Account, any premiums that you pay, any surrenders you make, and any charges we assess in connection with the Contract. There is no guaranteed minimum Accumulated Value, and, because a Contract’s Accumulated Value on any future date depends upon a number of variables, it cannot be predetermined.

Subaccount Valuation

On any Valuation Day, the Accumulated Value of your investment in a Subaccount is equal to the number of Accumulation Units attributable to that Subaccount multiplied by the accumulated unit value for that Subaccount. On any day that is not a Valuation Day, the Accumulated Value for a Subaccount will be determined on the next Valuation Day.

Accumulation Units. Transactions in and out of a Subaccount are made by crediting or reducing the Accumulation Units of the Subaccount.

We credit your Contract with Accumulation Units in a Subaccount when:

¨ You allocate premiums to that Subaccount;

¨ You transfer Accumulated Value into that Subaccount from another Subaccount or the Fixed Account.

We reduce the Accumulation Units in a Subaccount when:

¨ You transfer Accumulated Value out of that Subaccount into another Subaccount or the Fixed Account;

¨ You make a surrender from that Subaccount; or

¨ We deduct all or part of the administrative charge from that Subaccount.

Accumulation Unit Value. A Subaccount’s Accumulation Unit Value is the unit price that is used whenever we credit or reduce Accumulation Units of the Subaccount. We re-determine the Accumulation Unit Value for each Subaccount at the end of each Valuation Period. At the end of each Valuation Period, the Accumulation Unit Value for a Subaccount is equal to (a) multiplied by (b) where:

(a) Is the Accumulation Unit Value for that Subaccount at the end of the prior Valuation Period.

(b) Is the Net Investment Factor for that Subaccount for that period.

17

THE CONTRACT

Net Investment Factor

The Net Investment Factor for a Subaccount measures investment performance of that Subaccount. The Net Investment Factor for a Subaccount for a Valuation Period is determined by dividing (a) by (b) and then subtracting (c) where:

(a) Is the sum of

(i) The net asset value per share of the corresponding Portfolio of the Subaccount at the end of the Valuation Period; plus

(ii) The per share amount of any dividend or capital gain distribution made by the Portfolio if the “ex-dividend” date occurs during the Valuation Period; plus or minus

(iii) A per share charge or credit for any taxes reserved for that we determine to be a result of the investment operation of the Portfolio.

(b) Is the net asset value per share of the corresponding Portfolio of the Subaccount at the end of the prior Valuation Period.

(c) Is the mortality and expense risk charge we deduct for each day in the Valuation Period and is based upon the total Accumulated Value in the Subaccount. The mortality and expense risk charge is currently 1.10% and guaranteed never to exceed 1.25%.

Minimum Accumulated Value

We require your Contract to maintain a minimum Accumulated Value. The amount which must be maintained depends on your premium paying history as follows:

(1) At the end of any 24-month period in which you pay no premiums, your Accumulated Value must be at least $1,000 after all Contract charges have been applied.

(2) If you pay at least one premium every 24-months, we require only that the Accumulated Value always be sufficient to cover the Contract’s administrative charge.

If we know that your Contract will not meet these requirements on an upcoming Contract Anniversary, we will notify you 60 days before that anniversary and inform you of the minimum dollar amount which you must pay to keep the Contract in force. If you fail to pay at least that amount, we will terminate your Contract on the Contract Anniversary. If we do so because your Contract failed to meet Requirement (1) above, we will pay you the remaining Accumulated Value. If your Contract fails to meet Requirement (2) above, your Contract terminates without value.

Death Benefit Before the Annuity Commencement Date

If the Annuitant dies before the Annuity Commencement Date, the beneficiary will be entitled to receive the Contract’s death benefit.

The amount of the death benefit will be the greatest of:

¨ The Accumulated Value on the date we calculate the death benefit

¨ The sum of all premiums we received for the Contract, less the amount of all partial surrenders (including any applicable charges) which you made; and

¨ The Accumulated Value on the preceding Minimum Death Benefit Date plus the sum of the premiums we received for the Contract after that date, less the amount of any partial surrenders (including any applicable charges) which you made after that date. The Minimum Death Benefit Dates occur every six years on the Contract Anniversary.

We calculate the death benefit at the end of the Valuation Period during which we receive at our Service Center satisfactory proof of the death of an Annuitant. Any amount of the death benefit in excess of the Accumulated Value will be allocated to the Subaccounts and the Fixed Account according to the ratio of the Accumulated Value in each to the Accumulated Value in the Contract. Once calculated, death proceeds may continue to be subject to the investment experience of

18

THE CONTRACT

the Variable Account. When based on the investment experience of the Variable Account, death proceeds may increase or decrease daily and are not guaranteed for a minimum dollar amount.

If the beneficiary requests a single sum payment, we will pay the death proceeds within seven days after the date we calculate them. If the beneficiary requests a settlement option, it must be an option that you could have selected before the Annuity Commencement Date, and the option must provide that either:

(1) The principal and interest are completely distributed within five years after the date of death; or

(2) If the beneficiary is a natural person, distribution of the principal and interest is made by means of a periodic payment which begins within one year after the date of death and is not guaranteed for a period which extends beyond the life expectancy of the beneficiary.

Any proceeds not subsequently withdrawn will be paid in a lump sum on the date five years after the date of death.

If an Annuitant dies before annuity payments begin and that Annuitant’s spouse is the sole primary beneficiary, he or she may, to the extent permitted by law and the Contract, elect to continue the Contract in force, in which case the surviving spouse will become and be treated as the Annuitant and owner effective on the date that the death proceeds are calculated (“Exchange Date”). Any amount of death proceeds in excess of the Accumulated Value of the Contract will be allocated to the Subaccounts and the Fixed Account according to the ratio of the Accumulated Value in each to the Accumulated Value of the Contract. Where allowed by the Contract, the spouse will have 60 days from the date we receive proof of your death in which to elect to receive proceeds or to continue the Contract. If an election to receive death proceeds or to continue the Contract is not made within 60 days, the surviving spouse will be deemed to have elected to continue the Contract effective on the Exchange Date. If the surviving spouse elects to continue the Contract, the death benefit will be determined according to your Contract based on the Accumulated Value on the Exchange Date.

If your Contract was issued in connection with a Qualified Plan, additional restrictions on the manner of payment of the death benefit may apply. Any such restrictions will be stated in the Contract or the plan documents. Purchasers acquiring Contracts pursuant to Qualified Plans should consult qualified pension or tax advisers.

Death Benefit After the Annuity Commencement Date

If the Annuitant dies while we are paying you an annuity income under a settlement option, any death benefit payable will depend on the terms of the settlement option. If a death benefit is payable, the beneficiary may elect to receive the proceeds in the form of a settlement option, but only if the payments are paid at least as rapidly as payments were being paid under the settlement option in effect on the date of death. If your Contract was issued in connection with a Qualified Plan, additional restrictions on the manner of payment of the death benefit may apply.

Surrender

On or before the Annuity Commencement Date, you may surrender all or part of your Contract’s Accumulated Value by completing an approved surrender form and sending it to our Service Center. The surrender or partial surrender will not be processed until we receive your surrender request at our Service Center, in good order. Any surrender which you request will be made at the end of the Valuation Period during which the requirements for surrender are completed. We will pay you the proceeds from a surrender within seven days after the surrender is made.

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THE CONTRACT

The proceeds will be the amount surrendered less any surrender charge. See Charges and Deductions—Surrender Charge (Contingent Deferred Sales Charge).

A surrender reduces your Accumulated Value by the amount surrendered. For amounts surrendered from a Subaccount, this is done by selling Accumulation Units of the Subaccount. For partial surrenders, we allocate the surrender among the Subaccounts and the Fixed Account so that all accounts are reduced in value by the same percentage. With our approval, you may specify a different allocation for a partial surrender. If you have requested that a systematic partial surrender should be allocated to a specific Subaccount and the value in that Subaccount is less than the amount of the allocation, we will allocate the partial surrender among the Subaccounts and the Fixed Account so that all accounts are reduced in value by the same percentage.

A partial surrender must be at least $200 (except where partial surrender proceeds will be used to make payments on another Thrivent product) and must not reduce the remaining Accumulated Value to less than $1,000. (If the amount you request as a partial surrender would reduce the remaining Accumulated Value to less than $1,000, we may contact you to determine whether you would like a partial surrender of an amount that would result in remaining Accumulated Value of at least $1,000 or whether instead you would like to make a full surrender of your Contract. If we are unable to contact you within seven days, we reserve the right to treat your request as a request for a full surrender.) When you request a partial surrender, you specify the amount which you want to receive as a result of the surrender. If there are no surrender charges or withholding taxes associated with the surrender, the amount surrendered will be the amount which you request. Otherwise, the amount surrendered will be the amount necessary to provide the amount requested after we apply the surrender charge and any withholding taxes. If you have completed an approved telephone transaction authorization form, you may make partial surrenders by telephone. (Contracts used in a tax-sheltered annuity under Section 403(b) of the Internal Revenue Code will be subject to certain restrictions regarding surrenders and may require an employer signature. See Federal Tax Status—Qualified Plans.) Any surrender which you request will be made at the end of the Valuation Period during which the requirements for surrender are completed. We will pay you the proceeds from a surrender within seven days after the surrender is made.

After the Annuity Commencement Date, your Contract does not have an Accumulated Value which can be surrendered. However, if you are receiving annuity payments under certain settlement options, surrender may be allowed. Surrender is not allowed if your settlement option involves a life income or if you agreed not to revoke or change the option once annuity payments begin. For other settlement options, the amount available for surrender will be the commuted value of any unpaid annuity payments computed on the basis of the assumed interest rate incorporated in the annuity payments.

You must have a Medallion Signature Guarantee if you want to do any of the following:

¨ Surrender a value of more than $100,000;

¨ Send proceeds to an address other than the one listed on your account; or

¨ Make the check payable to someone other than the current owner(s).

A Medallion Signature Guarantee is a stamp provided by a financial institution that guarantees your signature. You sign the Thrivent Financial Surrender Form and have the signature(s) guaranteed by an eligible guarantor institution such as a commercial bank, trust company, brokerage firm, credit union, or a savings bank participating in the Medallion Signature Guarantee Program.

Until December 31, 2009, we will waive the Medallion Signature Guarantee requirement where payment

20

THE CONTRACT

proceeds (not exceeding $100,000) are sent directly to a 501(c)(3) charitable organization. We may waive the Medallion Signature Guarantee requirement in other limited instances.

For all surrenders, you should consider the tax implications of a surrender before you make a surrender request. See Federal Tax Status.

Transfers

On or before the Annuity Commencement Date, you may request the transfer of all or a part of your Contract’s Accumulated Value among the Subaccounts of the Variable Account and the Fixed Account.

You can request a transfer in two ways:

(1) By giving us Written Notice; or

(2) By telephone after completing an approved telephone transaction authorization form.

We will make the transfer without charge at the end of the Valuation period during which we receive your request. For transfers from the Fixed Account to a Subaccount of the Variable Account, the amount taken from the Fixed Account is used to buy Accumulation Units of the chosen Subaccount. For transfers from a Subaccount, Accumulation Units of the Subaccount are sold and the resulting dollar amount is, depending on your request, either transferred to the Fixed Account or used to buy Accumulation Units of another Subaccount.

Transfers are subject to the following conditions:

¨ The total amount transferred must be at least $200. However, if the total value in a Subaccount or the Fixed Account is less than $200, the entire amount may be transferred.

¨ We reserve the right to limit the number of transfers in each Contract Year. However, we will always allow at least 12 transfers per Contract Year. We consider all amounts transferred in the same Valuation Period to be one transfer. It is not dependent upon the number of originating or destination Subaccounts.

¨ In any Contract Year, only one of your allowed transfers may be from the Fixed Account. Any transfer from the Fixed Account must be made on or within 45 days after a Contract Anniversary before the end of the valuation day.

Transfers will also be subject to any conditions that may be imposed by the Portfolio whose shares are involved.

After the Annuity Commencement Date, you may change the percentage allocation of variable annuity payments among the available Subaccounts

(1) By giving us Written Notice; or

(2) By telephone after completing a telephone transaction authorization form.

Abusive Trading Policies and Monitoring Processes

We do not allow short-term and excessive transfers and other abusive trading practices, and we do not accommodate frequent purchases and redemptions except as described below. Abusive trading by Contract Owners can disrupt portfolio management and increase expenses of the underlying mutual fund and thereby negatively impact the performance of the corresponding Subaccount.

We have adopted the following policies to combat abusive trading practices. Several different tactics are used to reduce the frequency and effect of abusive trading within the Subaccounts. We may use a combination of monitoring Contract Owner activity and restricting contract owner transfers. When monitoring Contract Owner activity, we may consider several factors to evaluate transfer activity including, but not limited to, the amount and frequency of transfers, the amount of time between transfers, and trading patterns. In making this evaluation, we may

21

THE CONTRACT

consider trading in multiple Contracts under common ownership or control.

We may deem the transfer out of all or a substantial portion of a Contract Owner’s Subaccount value to be abusive if the transfer is made within fifteen days after the value was transferred into that Subaccount. This policy does not apply to dollar cost averaging, automatic investment plans, systematic withdrawal plans or non-abusive re-balancing. We reserve the right, in our sole discretion, to identify other trading practices as abusive.

If we determine that you are engaging in abusive trading activity, we will request you to cease such activity immediately. If we determine that you are continuing to engage in abusive trading, we will restrict your Contract so that you can make transfers on only one business day each calendar month and any such transfers must be separated by at least 20 calendar days. We reserve the right to reject or restrict any transfer request, without notice for any reason.

Although we seek to deter and prevent abusive trading practices, there are no guarantees that all activity can be detected or prevented. Contract Owners engaging in abusive trading practices use an evolving variety of strategies to avoid detection and it may not be possible for operational and technological systems to reasonably identify abusive trading. Contract Owners still may be subject to the harmful effects of abusive trading practices if we are unable to detect and deter such practices.

Dollar Cost Averaging

You may establish a dollar cost averaging program to make periodic transfers of at least the minimum amount required from the Thrivent Money Market Subaccount to up to 40 Subaccounts except the Fixed Account. If the remaining amount to be transferred drops below the amount you established, the entire remaining balance will be transferred on the next transfer date. If you subsequently allocate additional amounts to the Thrivent Money Market Subaccount, the transfers will begin again on the schedule you set unless you terminate the Money Market Dollar Cost Averaging program. Transfers will be made automatically on the date you choose (except the 29th, 30th, or 31st of a month). Transfers will continue until the entire amount in the Thrivent Money Market Subaccount has been depleted or until you notify us to discontinue the program. In order to terminate the program, we must receive Written Notice or notice by telephone (if you have such authorization).

Asset Rebalancing

On or before the Annuity Date, you may participate in an optional asset rebalancing program that allows you to elect a specific asset allocation to maintain over time. The sum of the rebalancing percentages must be 100% and each rebalancing allocation percentage must be a whole number not greater than 100%. You may select any date (except the 29^th, 30^th, or 31^st of a month) to begin the asset rebalancing program and whether to have your Subaccounts reallocated semiannually or annually. The rebalancing will be done after all other transfers and allocations to or from the Subaccounts for the Valuation Day. The asset rebalancing program does not allow you to include the Fixed Account in the rebalancing program. To participate in the asset rebalancing program, complete the Asset Rebalancing Form at the time of your application or call 1-800-THRIVENT (1-800-847-4836) to request an Asset Rebalancing Form. The program will not terminate automatically by transferring your allocations to another subaccount.

Telephone and Online Transactions

You may perform various transactions over the telephone if we receive proper written authorization from you prior to any such transaction. You may give such authorization at the time you complete your application, or later upon request.

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The Contract

We have adopted reasonable security procedures to ensure the authenticity of telephone instructions, including requiring identification information, recording conversations and providing written confirmations of transactions. Nevertheless, we will honor telephone instructions from any person who provides the correct identifying information. Be aware that there is a risk of possible loss to the Contact Owner if an unauthorized person uses this service in the Contact Owner’s name. Thrivent Financial disclaims any liability for losses resulting from such transfers by reason of their allegedly not having been properly authorized. However, if Thrivent Financial does not take reasonable steps to help ensure that such authorizations are valid, Thrivent Financial may be liable for such losses. Certain circumstances may prevent you from conducting telephone transactions including but not limited to the event of a disaster, equipment malfunction, or overload of telephone system circuits. Should circumstances prevent you from conducting a telephone transaction, we recommend you provide us with Written Notice.

If due to malfunction or other circumstances, the recording of the Contact Owner’s telephone request is incomplete or not fully comprehensible, we will not process the transaction.

The telephone number for transactions is (800) 847-4836.

We reserve the right to suspend or limit telephone transactions. We currently allow Contract Owners to pay premiums online at www.thrivent.com. We may offer other online transactions in the future. For more information regarding online transactions, please contact the Service Center at (800) 847-4836.

Timely Processing

We will process all requests in a timely fashion. Requests received prior to 4:00 p.m. Eastern Time (or sooner if the NYSE closes prior to 4:00 p.m. Eastern Time) on a Valuation Day will use the Accumulation Unit Value as of the close of regular trading on the NYSE on that Valuation Day. We will process requests received after that time using the Accumulation Unit Value as of the close of regular trading on the NYSE of the following Valuation Day. An online transaction payment will be applied on the effective date you select. This date can be the same day you perform the transaction as long as the request is received prior to 4:00 p.m. Eastern Time. The effective date cannot be a date prior to the date of the online transaction.

Once we issue your Contract, we will process payment of any amount due from any Subaccount within seven calendar days after we receive Notice. Payment may be postponed if the NYSE is closed. Postponement may also result for such other periods as the SEC may permit. Payment from the Fixed Accounts may be deferred up to six months.

Assignments

Assignment is the transfer of Contract ownership from one party to another. If a Contract is used in a Qualified Plan and the Contract Owner is a trust, custodian or employer, then the Contract Owner may transfer ownership to the Annuitant. Otherwise, the Contract may not be sold, assigned, discounted or pledged as collateral for a loan or as security for performance of an obligation or for any other purpose to any person other than us.

If the Contract is not used in a Qualified Plan, then ownership may be transferred, but not to a natural person, and the Contract may be assigned as collateral.

We are not bound by an assignment unless it is in writing and filed at our Service Center. We are not responsible for the validity or effect of any assignment.

You should consider the tax implications of an assignment. See Federal Tax Status.

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The Contract

Contract Owner, Beneficiaries and Annuitants

Unless another owner is named in the application, the Annuitant is the owner of the Contract and may exercise all of the owner’s rights under the Contract.

The Contract Owner may name a beneficiary to receive the death benefit payable under the Contract. If the beneficiary is not living on the date payment is due or if no beneficiary has been named, the death benefit will be paid to the estate of the Annuitant.

No Beneficiary change shall take effect unless received by the Society at its principal office or corporate headquarters. When it is received, any change shall take effect as of the date the request for beneficiary change was signed, as long as the request for change was mailed or actually delivered to the Society while the insured was alive. Such beneficiary change shall be null and void where the Society has made a good faith payment of the proceeds or has taken other action before receiving the change.

CHARGES AND DEDUCTIONS

Surrender Charge (Contingent Deferred Sales Charge)

We do not deduct a charge for sales expenses from premiums at the time premiums are paid. Instead, we deduct a charge at the time you surrender all or part of the your Accumulated Value. This surrender charge applies only during the first six Contract Years. During those years, we calculate the surrender charge as a percentage of the amount which you surrender, subject to certain exceptions noted below.

Surrender Charges
Contract Year	Percent Applied
1	6%
2	5%
3	4%
4	3%
5	2%
6	1%

After Contract Year 6 there is no charge for making surrenders. In addition, during the first six Contract Years we will limit or waive surrender charges as follows:

¨ Cumulative Percent-of-Premium Limit. For all surrenders, we will limit the surrender charge so that on any date, the sum of all surrender charges applied to that date will not exceed 6.5% of the total of premiums you have paid to that date.

¨ Surrenders Paid Under Certain Settlement Options. For surrenders which you make after Contract Year 3, there is no surrender charge applied to amounts which you elect to have paid under:

(1) A settlement option for a fixed amount or a fixed period (including Option 3V described under Annuity Provisions—Settlement Options) if the payment period and the accumulation period will equal or exceed the surrender charge period and you agree at the time of settlement that after the first payment is made, you may not revoke or change the settlement option.

(2) Options which involve a life income, including Option 4V or 5V described under Annuity Provisions—Settlement Options.

¨ Ten Percent Free Each Contract Year. In each Contract Year, you may surrender without a surrender charge up to 10% of the Accumulated Value existing at the time of your first surrender made in that Contract Year. This “Ten Percent Free” is not cumulative. For example, if you make no surrenders during the first three Contract Years, the percentage of Accumulated Value which you may surrender without charge in the fourth Contract Year is 10%, not 40%.

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CHARGES AND DEDUCTIONS

¨ Total Disability of the Annuitant. There is no surrender charge if the Annuitant is totally disabled (as defined in your Contract) on the date of a surrender.

¨ Series of Substantially Equal Periodic Payments for Life. There is no surrender charge if you receive payments made as one of a series of substantially equal periodic payments for your life or your life expectancy or the joint life expectancies of you and your beneficiary made not less frequently than annually.

Certain surrenders are subject to a 10% Federal tax penalty on the amount of income withdrawn. See Federal Tax Status.

If surrender charges are not sufficient to cover our sales expenses, we will bear the loss; conversely, if the amount of such charges proves more than enough, we will retain the excess. See Sufficiency of Charges below. We do not currently believe that the surrender charges we impose will cover our expected costs of distributing the Contracts.

Administrative Charge

Your Contract includes an annual administrative charge of $30 to help us cover the expenses we incur in administrating your Contract, the Variable Account and the Subaccounts. On each Contract Anniversary prior to and including the Annuity Commencement Date, we will determine if this charge will be applied to your Contract. We apply the charge only on Contract Anniversaries on which the sum of premiums you have paid less the amount of any partial surrenders you have made is less than $5,000 and the Accumulated Value is less than $5,000. We deduct the charge from your Accumulated Value, allocating the deduction among the Subaccounts and the Fixed Account so that all accounts are reduced in value by the same percentage. Any such deduction from a Subaccount is made by selling Accumulation Units of the Subaccount. With our approval, you may specify a different allocation for the administrative charge.

Mortality and Expense Risk Charge

We assume certain financial risks associated with the Contracts. Those risks are of two basic types:

¨ Mortality Risk. This includes our risk that (1) death benefits paid before the Annuity Commencement Date will be greater than the Accumulated Value available to pay those benefits, and (2) Annuitant payments involving life incomes will continue longer than we expected due to lower than expected death rates of the persons receiving them.

¨ Expense Risk. This is the risk that the expenses with respect to the Contracts will exceed Contract charges.

As compensation for assuming these risks, we deduct a daily mortality and expense risk charge from the average daily net assets in the Variable Account. The current charge (0.003014% per day) is equal to an annual rate of 1.10% (approximately 0.80% for mortality risk and 0.30% for expense risk) of the average daily net assets of each Subaccount in the Variable Account during the accumulation period. Contracts pending payout due to a death claim are charged at an annual rate of 0.95%. We may change this charge in the future, but we guarantee that it will never exceed an annual rate of 1.25% (0.003425% per day).

If the mortality and expense risk charge is insufficient to cover the actual cost of the mortality and expense risk assumed by us, we will bear the loss. We will not reduce annuity payments or increase the administrative charge to compensate for the insufficiency. If the mortality and expense risk charge proves more than sufficient, the excess will be profit available to us for any appropriate corporate purpose including, among other things, payment of sales expenses. See Sufficiency of Charges below.

Expenses of the Fund

Because the Variable Account purchases shares of the Fund, the net assets of the Variable Account will reflect

25

CHARGES AND DEDUCTIONS

the investment advisory fees or other expenses incurred by the Fund. See Fee and Expense Tables and the accompanying current prospectus of the Fund.

Taxes

Currently, no charge will be made against the Variable Account for Federal income taxes. We may, however, make such a charge in the future if income or gains within the Variable Account will result in any Federal income tax liability to us. Charges for other taxes, if any, attributable to the Variable Account may also be made. See Federal Tax Status.

Sufficiency of Charges

If the amount of all charges assessed in connection with the Contracts as described above is not enough to cover all expenses incurred in connection therewith, we will bear the loss. Any such expenses borne by us will be paid out of our general account which may include, among other things, proceeds derived from mortality and expense risk charges deducted from the Variable Account. Conversely, if the amount of such charges proves more than enough, we will retain the excess.

ANNUITY PROVISIONS

Annuity Commencement Date

The Annuity Commencement Date is the date on which we begin paying you your Contract’s annuity income. This date is based on the maturity age which you specify in your application. You may change the Annuity Commencement Date by giving us notice in writing or by telephone before both the Annuity Commencement Date currently in effect and the new Annuity Commencement Date. The new date selected must satisfy our requirements for an Annuity Commencement Date and any requirements that may be imposed by the state in which your Contract was issued.

Annuity Proceeds

The proceeds available on the Annuity Commencement Date will be the amount provided by surrendering your Contract’s entire Accumulated Value on that date. If the Annuity Commencement Date occurs within the first six Contract Years, surrender charges will be deducted from the Accumulated Value if they apply.

We will pay you the proceeds at maturity according to the annuity settlement option which you select. However, we will pay the proceeds in a single sum if the Accumulated Value on the Annuity Commencement Date is less than $2,000 or if you elect to receive the proceeds in a single sum. If we pay you proceeds in a single sum, your Contract will terminate on the Annuity Commencement Date.

If you have not selected either a settlement option or a single sum payment by the Annuity Commencement Date, we will pay proceeds of $2,000 or more using a fixed annuity, life income with 10-year guarantee period.

Settlement Options

You may elect to have proceeds paid to you under an annuity settlement option or a combination of options. Under each option, you may choose whether annuity payments are to be made on a fixed or variable basis. You may change your choice of settlement option by giving us Written Notice at least 30 days before the Annuity Commencement Date.

The fixed annuity settlement options available to you are described in your Contract but are not summarized here. The variable annuity settlement options which your Contract offers are as follows:

¨ Option 3V—Income for a Fixed Period. Under this option, we pay an annuity income for a fixed number of years, not to exceed 30.

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ANNUITY PROVISIONS

¨ Option 4V—Life Income with Guaranteed Period. Under this option, we pay an annuity income for the lifetime of the payee. If the payee dies during the guaranteed period, payments will be continued to the end of that period and will be paid to the beneficiary. You may select a guaranteed period of 10 or 20 years. You may not revoke or change the option once annuity payments begin.

¨ Option 5V—Joint and Survivor Life Income with Guaranteed Period. Under this option, we pay an annuity income for as long as at least one of two payees is alive. If both payees die during the guaranteed period, payments will be continued to the end of that period and will be paid to the beneficiary. You may select a guaranteed period of 10 or 20 years. You may not revoke or change the option once annuity payments begin.

In addition to these options, proceeds may be paid under any other settlement option agreeable to us.

Frequency of Annuity Payments

Annuity payments under a settlement option will be paid at monthly intervals unless you and we agree to a different payment schedule. If annuity payments would be or become less than $25 ($20 for Contracts issued in the state of Texas) if a single settlement option is chosen, or $25 ($20 for Contracts issued in the state of Texas) on each basis if a combination of variable and fixed options is chosen, we may change the frequency of payments to intervals that will result in payments of at least $25 ($20 for Contracts issued in the state of Texas) each from each option chosen.

Amount of Variable Annuity Payments

The amount of the first variable annuity payment is determined by applying the proceeds to be paid under a particular settlement option to the annuity table in the Contract for that option. The table shows the amount of the initial annuity payment for each $1,000 applied.

Subsequent variable annuity payments vary in amount according to the investment experience of the selected Subaccount(s). Assuming annuity payments are based on the unit values of a single Subaccount, the dollar amount of the first annuity payment (as determined above) is divided by the Annuity Unit Value as of the Annuity Commencement Date to establish the number of Annuity Units representing each annuity payment. This number of Annuity Units remains fixed during the annuity payment period. The dollar amount of the second and subsequent variable annuity payments is not predetermined and may change from payment to payment. The dollar amount of the second and each subsequent variable annuity payment is determined by multiplying the fixed number of Annuity Units by the Annuity Unit Value. See Subaccount Annuity Unit Value below. If the payment is based upon the Annuity Unit Values of more than one Subaccount, the procedure described here is repeated for each applicable Subaccount and the sum of the payments based on each Subaccount is the amount of the annuity payment.

The annuity tables in the Contracts are based on the mortality table specified in the Contract. Under these tables, the longer the life expectancy of the Annuitant under any life annuity option or the duration of any period for which payments are guaranteed under the option, the smaller will be the amount of the first monthly variable annuity payment. We guarantee that the dollar amount of each fixed and variable annuity payment after the first payment will not be affected by variations in expenses or in mortality experience from the mortality assumptions used to determine the first payment.

Subaccount Annuity Unit Value

A Subaccount’s Annuity Unit Value is used to determine the dollar value of annuity payments based on Annuity Units of the Subaccount. Annuity Unit Values may increase or decrease during each Valuation Period. We re-determine the Annuity Unit Value for each Subaccount at the end of each Valuation Period. The

27

ANNUITY PROVISIONS

initial Annuity Unit Value for a Subaccount was equal to the initial Accumulation Unit Value for that Subaccount. At the end of any subsequent Valuation Period, each Subaccount’s Annuity Unit Value is equal to (a) x (b) x (c) where:

(a) Is that Subaccount’s Annuity Unit Value at the end of the immediately preceding Valuation Period.

(b) Is that Subaccount’s Net Investment Factor for the current Valuation Period. See The Contract—Subaccount Valuation—Net Investment Factor described earlier in this Prospectus.

(c) Is a discount factor equivalent to an assumed investment earnings rate of 3.5% per year.

GENERAL PROVISIONS

Entire Contract

Your entire insurance Contract is comprised of:

¨ the Contract including any attached riders, endorsements or amendments;

¨ the application attached to the Contract; and

¨ the Thrivent Financial Articles of Incorporation and Bylaws which are in effect on the issue date of the Contract.

Postponement of Payments

We may defer payment of any surrender, death benefit or annuity payment amounts that are in the Variable Account if:

(1) The New York Stock Exchange is closed other than customary weekend and holiday closings, or trading on the New York Stock Exchange is restricted as determined by the SEC; or

(2) An emergency exists, as determined by the SEC, as a result of which disposal of securities is not reasonably practicable or it is not reasonably practicable to determine the value of the Variable Account’s net assets.

Transfers and allocations of Accumulated Value to and from the Subaccounts of the Variable Account may also be postponed under these circumstances.

Purchase Payments

Your payment must be in U.S. dollars drawn on a U.S. Bank. Thrivent does not accept cash, starter checks (checks without pre-printed registration), traveler’s checks, credit card courtesy checks or third-party checks. If you pay a premium by check, we require a reasonable time for that check to clear your bank before such funds would be available to you. This period of time will not exceed 15 days.

Date of Receipt

Except as otherwise stated herein, the date of our receipt of any Written Notice, premium payment, telephonic instructions or other communication is the actual date it is received at our Service Center, in proper form unless received (1) after the close of the New York Stock Exchange (generally 4:00 p.m. Eastern Time), or (2) on a date which is not a Valuation Day. In either of these two cases, the date of receipt will be deemed to be the next Valuation Day.

Anti-Money Laundering

In order to protect against the possible misuse of our products in money laundering or terrorist financing, we have adopted an anti-money laundering program satisfying the requirements of federal law. Among other things, this program requires us, our financial representatives and customers to comply with certain

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GENERAL PROVISIONS

procedures and standards that serve to ensure that our customers’ identities are properly verified and that premiums are not derived from improper sources. We reserve the right to verify any information received by accessing information maintained in databases internally or externally.

Applicable laws designed to prevent terrorist financing and money laundering might in certain circumstances, require us to block certain transactions until we receive authorization from the appropriate regulator.

Our anti-money laundering program is subject to change without notice to account for changes in applicable laws or regulations. We may also make changes as a result of our ongoing assessment of exposure to illegal activity.

Maintenance of Solvency

This provision applies only to values in the Fixed Account.

If our reserves for any class of Contracts become impaired, you may be required to make an extra payment. Our Board of Directors will determine the amount of any extra payment based on each member’s fair share of the deficiency. If the payment is not made, it will be charged as a loan against the Contract with an interest rate of 5% per year. You may choose an equivalent reduction in benefits instead of or in combination with the loan. Any indebtedness and interest charged against the Contract, or any agreement for a reduction in benefits, shall have priority over the interest of any owner, beneficiary, or collateral assignee under the Contract.

Reports to Contract Owners

At least once each year we will send you a report showing the value of your Contract. The report will include the Accumulated Value and any additional information required by law. Values shown will be for a date no more than two months prior to the date we mail the report. We will mail your report to your last known address unless prior mailings have been returned undeliverable to us. We will make a reasonable effort in these situations to locate you in order to continue mailing your report and other related documents. Please notify the Service Center if your address has changed.

State Variations

Any state variations in the Contracts are covered in a special policy form for use in that state. This Prospectus provides a general description of the Contracts. Your actual Contract (including the application) and any endorsements, along with our Bylaws, are the controlling documents.

Gender Neutral Benefits

In 1983, the U.S. Supreme Court held in Arizona Governing Committee v. Norris that the application of sex-distinct actuarial tables to employees based upon their gender in calculating the amount of retirement benefits violates Title VII of the Civil Rights Act of 1963. Because of this decision, employer-sponsored retirement plans may not use sex-distinct actuarial annuity rates in determining benefits.

Generally, annuity payments described in this Prospectus are determined using sex-distinct actuarial tables based on the Annuitant’s gender. However, annuity payments will be based on a gender neutral basis for the following:

¨ Contracts used in an employer sponsored retirement plan;

¨ Contracts issued in Massachusetts (beginning January 1, 2009); and

¨ Contracts issued in Montana (beginning October 1, 1985)

Contract Inquiries

You may make inquiries regarding the Contract by writing or calling our Service Center at 1-800-THRIVENT (1-800-847-4836).

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FEDERAL TAX STATUS

General

The following discussion of the federal income tax treatment of the Contract is not exhaustive, does not purport to cover all situations, and is not intended as tax advice. The federal income tax treatment of the Contract is unclear in certain circumstances, and a qualified tax advisor should always be consulted with regard to the application of law to individual circumstances. This discussion is based on the Internal Revenue Code of 1986, as amended (the “Code”), Treasury Department regulations, and interpretations existing on the date of this Prospectus. These authorities, however, are subject to change by Congress, the Treasury Department, and judicial decisions.

This discussion does not address any federal estate or gift tax consequences, or any state or local tax consequences, associated with the Contract. In addition, we make no guarantee regarding any tax treatment—federal, state, or local—of any Contract or any transaction involving a Contract.

Tax Status of the Variable Account

The Variable Account is not separately taxed as a “regulated investment company” under the Code, but rather is treated as our separate account. Under current law, both the investment income and realized capital gains of the Variable Account (i.e., the income and capital gains distributed to the Variable Account by the Fund) are reinvested without taxation to us. However, we reserve the right in the future to make a charge against the Variable Account or the Accumulated Value of a Contract for any federal, state, or local income taxes that we incur and determine to be attributable to the Variable Account or the Contract.

Taxation of Annuities in General

The following discussion assumes that the Contract is not used in connection with a Qualified Plan.

Tax Deferral During Accumulation Period

In general, under current law, an increase in a Contract’s Accumulated Value is not taxable to the Contract Owner until received, either in the form of annuity income payments as contemplated by the Contract or in some other form of distribution. However, this rule applies only if: (1) the investments of the Variable Account are “adequately diversified” in accordance with Treasury Department regulations; (2) the Company, rather than the Contract Owner, is considered the owner of the assets of the Variable Account for federal income tax purposes; (3) the Contract Owner is an individual (or an individual is treated as the Contract Owner for tax purposes); and (4) the Contract’s Annuity Date is not unduly delayed.

Diversification Requirements. The Code and Treasury Department regulations prescribe the manner in which the investments of a segregated asset account, such as the Variable Account, are to be “adequately diversified.” If the Variable Account fails to comply with these rules, the Contract will not be treated as an annuity Contract for federal income tax purposes, and so the interest or earnings credited to the Contract’s Accumulated Value in any year will be includible in the Contract Owner’s income that year for federal tax purposes. We expect that the Variable Account, through the Fund, will comply with these rules.

Ownership Treatment. In certain circumstances, variable annuity Contract Owners may be considered the owners, for federal income tax purposes, of the assets of a segregated asset account used to support their Contracts. In those circumstances, the account’s income and gains would be currently includible in the Contract Owners’ gross income. The Internal Revenue Service (the “IRS”) has stated in published rulings that a variable Contract Owner will be considered the owner of the assets of a segregated asset account if the owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets.

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FEDERAL TAX STATUS

The ownership rights under the Contract are similar to, but different in certain respects from, the ownership rights described in IRS rulings in which the Contract Owners were determined not to be the owners of the assets of a segregated asset account. For example, the Contract Owner has the choice of more investment options to which to allocate premium payments and the Accumulated Value than were addressed in those rulings. These differences could result in the Contract Owner being treated as the owner of all or a portion of the assets of the Variable Account and thus subject to current taxation on the income and gains from those assets. In addition, we do not know what standards will be set forth in any further regulations or rulings which the Treasury Department or the IRS may issue. We therefore reserve the right to modify the Contract as necessary to attempt to prevent Contract Owners from being considered the owners of the assets of the Variable Account. However, there is no assurance that such efforts would be successful.

Contracts Not Owned by Individuals. As a general rule, Contracts held by “nonnatural persons” such as a corporation, trust, or other similar entity are not treated as annuity Contracts for federal tax purposes. The income on such Contracts (as defined in the tax law) is taxed as ordinary income that is received or accrued by the Contract Owner during the taxable year. However, this rule generally will not apply to a Contract held by a trust or other entity which holds the Contract as an agent for a natural person. In addition, this rule will not apply to: (1) a Contract acquired by the estate of a decedent by reason of the death of the decedent; (2) Contracts used in connection with certain Qualified Plans; (3) Contracts purchased by employers upon the termination of certain Qualified Plans; (4) certain Contracts used in connection with structured settlement agreements; and (5) a Contract purchased with a single premium payment when the annuity starting date is no later than one year from the purchase of the Contract and substantially equal periodic payments are made, not less frequently than annually, during the annuity income period.

The remainder of this discussion assumes that the Contract will be treated as an annuity Contract for federal income tax purposes.

Taxation of Partial and Full Surrenders

In the case of a partial surrender, the amount received is generally includible in income for federal tax purposes to the extent that the Accumulated Value of the Contract, before the partial surrender, exceeds the “investment in the Contract.” In the case of a full surrender, the amount received is includible in income to the extent that it exceeds the investment in the Contract. For these purposes, the investment in the Contract at any time equals the total of the premium payments made under the Contract up to that time less any amounts previously received from the Contract which were excludable from income. All amounts includible in income with respect to the Contract are taxed as ordinary income; no amounts are taxed at the lower rates currently applicable to long-term capital gains and corporate dividends.

Taxation of Annuity Income Payments

Normally, the portion of each annuity income payment includible in income for federal tax purposes is the excess of the payment over an exclusion amount. In the case of variable income payments, this exclusion amount is the investment in the Contract (defined above) allocated to the Variable Account when payments begin, adjusted for any period certain or refund feature, divided by the number of payments expected. In the case of fixed income payments, the exclusion amount is determined by multiplying (1) the payment, by (2) the ratio of the investment in the Contract allocated to our Fixed Account, adjusted for any period certain or refund feature, to the total expected amount of annuity income payments. For this purpose, the expected number or amount of annuity income payments is determined by Treasury Department regulations which take into account the Annuitant’s life expectancy and the form of annuity benefit selected.

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FEDERAL TAX STATUS

Once the total amount of the investment in the Contract is excluded using the above formulas, annuity income payments will be fully taxable. If annuity income payments cease because of the death of the Annuitant and before the total amount of the investment in the Contract is recovered, the unrecovered amount generally will be allowed as a deduction.

There may be special income tax issues present in situations where the Contract Owner and the Annuitant are not the same person and are not married to one another. In such situations a tax advisor should be consulted.

Tax Treatment of Death Benefit

Prior to the Annuity Date, we may distribute amounts from a Contract because of the death of a Contract Owner or, in certain circumstances, the death of the Annuitant. If distributed in a lump sum, such death benefit proceeds are includible in income in the same manner as a full surrender, or if distributed under an annuity income option, such proceeds are includible in the same manner as annuity income payments.

After the Annuity Date, where a guaranteed period exists under a life income option and the Annuitant dies before the end of that period, payments made to the beneficiary for the remainder of that period are includible in income as follows: (1) if received in a lump sum, the payment is includible to the extent that it exceeds the unrecovered investment in the Contract; or (2) if distributed in accordance with the existing annuity income option, they are fully excluded from income until the remaining investment in the Contract is deemed to be recovered, and all payments thereafter are fully includible in income.

Assignments, Pledges, and Gratuitous Transfers

Any assignment or pledge of (or agreement to assign or pledge) any portion of the Accumulated Value of the Contract is treated for federal income tax purposes as a surrender of such amount or portion. The investment in the Contract is increased by the amount includible in income with respect to such an assignment or pledge. If a Contract Owner transfers a Contract without adequate consideration to a person other than the Owner’s spouse (or a former spouse incident to divorce), the Owner must include in income the difference between the Contract’s Accumulated Value and the investment in the Contract at the time of the transfer. In such a case, the transferee’s investment in the Contract is increased to reflect the amount includible in the transferor’s income.

Penalty Tax on Premature Distributions

Technically, the amount of any payment from the Contract that is includible in income is subject to a 10% penalty tax. However, this penalty tax does not apply to any payment: (1) received on or after the Contract Owner attains age 59 ¹/2; (2) attributable to the Contract Owner’s becoming disabled (as defined in the tax law); (3) made on or after the death of the Contract Owner or, if the Contract Owner is not an individual, on or after the death of the primary Annuitant (as defined in the tax law); (4) that is part of a series of substantially equal periodic payments, not less frequently than annually, for the life or life expectancy of the Contract Owner or the joint lives or joint life expectancies of the Contract Owner and a designated beneficiary (as defined in the tax law). For the purposes of substantially equal periodic payments, if there is a significant modification of the payment schedule before the later of the taxpayer reaching age 59 ¹/2 or the expiration of five years from the time the payment starts, the taxpayer’s income shall be increased by the amount of tax and deferred interest that otherwise would have been incurred.

Special Hurricane-Related Relief for Qualified Plans. The Katrina Emergency Tax Relief Act and the Gulf Opportunity Zone Act provide tax relief to victims of Hurricanes Katrina, Rita and Wilma. The relief

32

FEDERAL TAX STATUS

includes a waiver of the 10% penalty tax on qualified hurricane distributions from eligible retirement plans. In addition, the 20% mandatory withholding rules do not apply to these distributions and the tax may be spread out ratably over a three-year period. A recipient of qualified hurricane distribution may also elect to re-contribute all or a portion of the distribution to an eligible retirement plan within three (3) years of receipt without tax consequences. Other relief may also apply. You should consult a competent tax adviser for further information.

Aggregation of Contracts

In certain circumstances, the IRS may determine the amount of any distribution from the Contract that is includible in income by combining some or all of the annuity Contracts a person owns. For example, if a person purchases a Contract and also purchases at approximately the same time an immediate annuity issued by us, the IRS may treat the two Contracts as one Contract. Similarly, if a person transfers part of his or her interest in one annuity contract to purchase another annuity Contract, the IRS might treat the two Contracts as one Contract. In addition, if a person purchases two or more Contracts from us (or an affiliate) during any calendar year, all such Contracts will be treated as one Contract for purposes of determining the amount of any full or partial surrender that is includible in income. The effects of such aggregation are not always clear; however, such aggregation could affect the amount of a surrender or an annuity payment that is taxable and the amount which might be subject to the 10% penalty tax described above.

Exchanges of Annuity Contracts

We may issue the Contract in exchange for all or part of another annuity Contract. Such an exchange will be income tax free if certain requirements are satisfied (a 1035 Exchange). If the exchange is tax free, the investment in the Contract immediately after the exchange will generally be the same as that of the annuity Contract exchanged, increased by any additional premium payment made as part of the exchange. If part of an existing Contract is exchanged for the Contract, the IRS might treat the two Contracts as one annuity Contract in certain circumstances. (See “Aggregation of Contracts.”) You should consult your tax advisor in connection with an exchange of all or part of an annuity Contract for the Contract.

Qualified Plans

The Contracts also are designed for use with several types of Qualified Plans. When used in Qualified Plans, deferred annuities like the Contracts do not offer additional tax-deferral benefits, but annuities offer other product benefits to investors in Qualified Plans. Participants under such Qualified Plans as well as Contract Owners, Annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to the terms and conditions of the plans themselves regardless of the terms and conditions of the Contracts issued in connection with them. Those who intend to use the Contract in connection with Qualified Plans should seek competent advice.

The tax rules applicable to Qualified Plans, and to a Contract when used in connection with a Qualified Plan, vary according to the type of plan and the terms and conditions of the plan itself, and they take precedence over the general annuity tax rules described above. For example, for full surrenders, partial surrenders, and annuity income payments under Contracts used in Qualified Plans, there may be no “investment in the Contract,” with the result that the total amount received may be includible in income. The includible amount is taxed at ordinary income tax rates, and a 10% penalty tax also may apply. Exceptions to this penalty tax vary depending on the type of Qualified Plan involved; in the case of an Individual Retirement Annuity (discussed below), exceptions comparable to those described above are available.

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FEDERAL TAX STATUS

The following briefly describes certain types of Qualified Plans in connection with which we may issue a Contract.

Individual Retirement Accounts and Annuities. Section 408 of the Code permits eligible individuals to contribute to an Individual Retirement Account or an Individual Retirement Annuity (collectively known as an “IRA”). IRAs are subject to limits on the amounts that may be contributed and deducted, on the persons who may be eligible to do so, and on the time when distributions may commence. Also, subject to certain requirements discussed below, you may “roll over” distributions from certain Qualified Plans on a tax-deferred basis into an IRA.

Roth IRAs. Section 408A of the Code permits eligible individuals to contribute to a type of IRA known as a “Roth IRA.” Roth IRAs are generally subject to the same rules as non-Roth IRAs, but differ in several respects. Among the differences is that, although contributions to a Roth IRA are not deductible, “qualified distributions” (those that satisfy certain waiting and use requirements) from a Roth IRA will be excludable from income. Subject to certain restrictions, a distribution from an eligible employer-sponsored qualified plan may be directly rolled over/converted to a Roth IRA.

Section 403(b) Plans. Section 403(b) of the Code permits public school employees and employees of certain types of charitable, educational, and scientific organizations to have their employers purchase annuity Contracts for them and, subject to certain limitations, to exclude the amount of premium payments from income for federal tax purposes. Subject to plan provisions, distributions from a Contract purchased under section 403(b) may be paid only when the employee reaches age 59 ¹/2, separates from service, dies, or becomes disabled, or in the case of financial hardship. As a result, the Contract Owner will not be entitled to exercise the surrender rights described under the heading “The Contracts—Surrender (Redemption)” unless one of the above conditions is satisfied. For contracts maintained pursuant to an employer sponsored 403(b) plan, we may require the employer’s signature to process any requests for withdrawal, surrender, rollover or transfers to another contract.

Direct Rollovers

If your Contract is purchased under section 403(b) of the Code or is used in connection with certain other Qualified Plans, any “eligible rollover distribution” from the Contract will be subject to direct rollover and

mandatory withholding requirements. An eligible rollover distribution generally is any taxable distribution from certain Qualified Plans (including from a Contract purchased under section 403(b)) excluding amounts such as minimum distributions required under the Code. Under these requirements, federal income tax equal to 20% of the eligible rollover distribution will be withheld from the amount of the distribution. Unlike withholding on certain other amounts distributed from the Contract, discussed below, the Owner cannot elect out of withholding with respect to an eligible rollover distribution. However, this 20% withholding will not apply if the distribution is directly transferred to certain Qualified Plans.

Federal Income Tax Withholding

We will withhold and remit to the federal government a part of the taxable portion of each distribution made under a Contract unless the payee notifies us at or before the time of the distribution that he or she elects not to have any amounts withheld. In certain circumstances, we may be required to withhold tax. The withholding rates applicable to the taxable portion of annuity income payments (other than eligible rollover distributions made in connection with Qualified Plans) are the same as the withholding rates generally applicable to payments of wages. Further, a 10% withholding rate applies to the taxable portion of non-periodic payments (including partial and full surrenders), and as discussed above, the withholding

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FEDERAL TAX STATUS

rate applicable to eligible rollover distributions is 20%. Whether or not federal income tax is withheld, the Contract Owner (or other applicable taxpayer) remains liable for payment of federal income tax on Contract distributions.

VOTING RIGHTS

To the extent required by law, we will vote the Fund’s shares held in the Variable Account at regular and special shareholder meetings of the Fund in accordance with instructions received from persons having voting interests in the corresponding Subaccounts of the Variable Account. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result we determine that we are permitted to vote the Fund’s shares in our own right, we may elect to do so.

Before the Annuity Commencement Date, the Contract Owner shall have the voting interest with respect to shares of the Fund attributable to the Contract. On and after the Annuity Commencement Date, the person entitled to receive annuity payments shall have the voting interest with respect to such shares, which voting interest will generally decrease during the annuity period.

The number of votes which a Contract Owner or person entitled to receive annuity payments has the right to instruct will be calculated separately for each Subaccount. The number of votes which each Contract Owner has the right to instruct will be determined by dividing a Contract’s Accumulated Value in a Subaccount by the net asset value per share of the corresponding Portfolio in which the Subaccount invests. The number of votes which each person entitled to receive annuity payments has the right to instruct will be determined by dividing the Contract’s reserves in a Subaccount by the net asset value per share of the corresponding Portfolio in which the Subaccount

invests. Fractional shares will be counted. The number of votes of the Portfolio which the Contract Owner or person entitled to receive annuity payments has the right to instruct will be determined as of the date coincident with the date established by the Portfolio for determining shareholders eligible to vote at the meeting of the Funds. Voting instructions will be solicited by written communications prior to such meeting in accordance with procedures established by the Funds.

Any Portfolio shares held in the Variable Account for which we do not receive timely voting instructions, or which are not attributable to Contract Owners, will be voted by us in proportion to the instructions received from all Contract Owners. Any Portfolio shares held by us or our affiliates in general accounts will, for voting purposes, be allocated to all separate accounts of ours and our affiliates having a voting interest in that Portfolio in proportion to each such separate account’s votes. Voting instructions to abstain on any item to be voted upon will be applied on a pro rata basis to reduce the votes eligible to be cast.

Each person having a voting interest in a Subaccount will receive proxy materials, reports and other materials relating to the appropriate Portfolio.

35

SALES AND OTHER AGREEMENTS

Thrivent Investment Management Inc., 625 Fourth Avenue South, Minneapolis, Minnesota 55415, an indirect subsidiary of Thrivent Financial, is a registered broker-dealer and acts as principal underwriter and distributor of the Contracts pursuant to a distribution agreement with us. Thrivent Investment Management Inc. also acts as the distributor of a number of other variable annuity and variable life insurance contracts we offer.

The financial representative in this transaction is a duly licensed registered representative of Thrivent Investment Management Inc. and is also an appointed insurance agent of Thrivent Financial. The financial representative receives commissions and other incentives, which may be substantial, from Thrivent Financial in return for serving as its agent for the sale of the Contracts. This compensation is separate from, and in addition to, any fee you may be paying for investment advisory services, including financial planning services, and may vary depending on the size of the Contract purchased, the total number of insurance contracts or annuity contracts sold by the financial representative, and other factors including whether you currently own a product sold by Thrivent Financial or our affiliates. The commissions that the financial representative receives typically will increase as the size of the Contract increases, but will not result in any charge to you in addition to the charges already described in this Prospectus. (Commissions and other incentives are described below.) As a result, the financial representative may have a conflict of interest if he or she is acting as your representative for investment advisory services and acting as an agent of ours for purposes of the sale of the Contract.

Our financial representatives sell almost exclusively insurance and annuity products of ours. It is more profitable for us and our affiliates if members purchase product issued by us instead of those issued by other insurance companies. As a result, we have a financial interest in the sale of the Contract, and an incentive to recommend that you purchase a contract issued by Thrivent Financial instead of a contract issued by another company. Sales of Thrivent Financial insurance products, which include variable annuity and variable life insurance contracts, helps support our mission of service to congregations and communities. This gives both the organization and our members an opportunity to promote volunteerism, aid those in need, strengthen non-profit organizations and address critical community needs.

In addition, compensation varies by product type. As a result, your financial representative in this transaction may have a financial incentive to recommend that you purchase one product instead of another.

From time to time and in accordance with applicable laws and regulations, financial representatives are eligible for various incentives. These include cash incentives such as bonuses and sales incentives, and non-cash incentives such as conferences, seminars and trips. Sales of Contracts may help the financial representative in this transaction and/or his or her supervisors qualify for such incentives. Compensation consists of commissions, bonuses and promotional incentives. Commissions range from 1% to 3.85% of premiums paid into the Contract. Commission rates are based upon the age of the annuitant at the time the premium is paid. Your financial representative may receive cash bonuses ranging from 0% to 50% of base commissions, if eligible.

In addition to commissions, we may pay or provide other promotional incentives. If, in the case of a full surrender, we persuade you to retain your Contract instead of surrendering it, your financial representative may be eligible for a retention bonus. Financial representatives may be eligible for promotional incentives depending on the level of their sales of these Contracts as well as the other products we offer. These promotional incentives may include, but are not limited to:

¨ sponsorship of marketing, educational, compliance meetings and conferences, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings;

36

SALES AND OTHER AGREEMENTS

¨ marketing support related to sales of the Contract including for example, the creation of marketing materials and advertising; and

¨ providing services to Contract Owners.

These promotional incentives or reimbursements may be calculated as a percentage of the financial representative’s total assets attributable to sales of the Contract or may be a fixed dollar amount. This additional compensation may provide an incentive for the financial representative to favor the Contracts over other products.

In addition, our home office employees, as well as our field management personnel who manage our financial representatives, are eligible to receive incentive compensation, based on the amount of sales by the financial representatives of ours and others insurance and annuity products.

LEGAL PROCEEDINGS

There are no legal proceedings to which the Variable Account is a party or to which the assets of the Variable Account are subject. Neither Thrivent Financial nor

Thrivent Investment Management is involved in any litigation that is of material importance in relation to their financial condition or that relates to the Variable Account.

FINANCIAL STATEMENTS

The financial statements of Thrivent Financial and the Variable Account are contained in the Statement of Additional Information.

37

STATEMENT OF ADDITIONAL INFORMATION

TABLE OF CONTENTS

¨    Introduction

¨    Principal Underwriter

¨    Standard and Poor’s Disclaimer

¨    Independent Registered Public Accounting Firm and Financial Statements

You may obtain a copy of the SAI and all other documents required to be filed with the SEC without charge by calling us at 1-800-THRIVENT (1-800-847-4836), going online at thrivent.com, or by writing us at Thrivent Financial for Lutherans, 4321 North Ballard Road, Appleton, Wisconsin, 54919-0001.

You may obtain copies of the prospectus, SAI, annual report and all other documents required to be filed with the Securities and Exchange Commission at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the public reference room may be obtained by calling (202) 551-8090. Reports and other information about Thrivent Variable Annuity Account B are available on the Commission’s web site at www.sec.gov. Copies of this information may be obtained, upon payment of a duplicating fee, by writing to the Public Reference Section of the Commission, U.S. Securities & Exchange Commission, 100 F Street, N.E., Washington, DC 20549-0102.

THRIVENT VARIABLE ANNUITY ACCOUNT B

1933 Act Registration No. 33-76154

1940 Act Registration No. 811-7934

Please send me the Statement of Additional Information (SAI) for the:

Flexible Premium Deferred Variable Annuity

(Thrivent Variable Annuity Account B)

(Name)		(Date)
(Street Address)
(City)	(State)	(Zip Code)

38

APPENDIX A—CONDENSED FINANCIAL INFORMATION

The following tables show the historical performance of Accumulation Unit Values for each of the previous years ending December 31, for which the relevant Subaccount has been in existence. The date on which operations commenced in each price level is noted in parentheses. This information is derived from the financial statements of the Variable Account and should be read in conjunction with the financial statements, related notes and other financial information of the Variable Account included in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by contacting us at 1-800-THRIVENT (1-800-847-4836) or visiting our website at www.thrivent.com.

Year ended Dec. 31,	2008		2007		2006		2005		2004		2003		2002		2001	2000	1999
Thrivent Aggressive Allocation Subaccount (April 29, 2005)
Accumulation unit:										—		—		—	—	—	—
value at beginning of period	$	13.82	$	12.78	$	11.36	$	10.00		—		—		—	—	—	—
value at end of period	$	8.58	$	13.82	$	12.78	$	11.36		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		5,933		5,640		4,801		1,249		—		—		—	—	—	—
Thrivent Moderately Aggressive Allocation Subaccount (April 29, 2005)
Accumulation unit:
value at beginning of period	$	13.27	$	12.45	$	11.13	$	10.00		—		—		—	—	—	—
value at end of period	$	8.74	$	13.27	$	12.45	$	11.13		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		20,734		20,168		14,525		3,666		—		—		—	—	—	—
Thrivent Moderate Allocation Subaccount (April 29, 2005)
Accumulation unit:
value at beginning of period	$	12.71	$	12.04	$	10.92	$	10.00		—		—		—	—	—	—
value at end of period	$	9.09	$	12.71	$	12.04	$	10.92		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		27,444		27,146		18,718		5,223		—		—		—	—	—	—
Thrivent Moderately Conservative Allocation Subaccount (April 29, 2005)
Accumulation unit:
value at beginning of period	$	12.06	$	11.55	$	10.66	$	10.00		—		—		—	—	—	—
value at end of period	$	9.47	$	12.06	$	11.55	$	10.66		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		11,526		10,589		6,625		2,085		—		—		—	—	—	—
Thrivent Technology Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	12.96	$	11.80	$	11.55	$	11.26	$	10.86	$	7.25	$	10.00	—	—	—
value at end of period	$	6.62	$	12.96	$	11.80	$	11.55	$	11.26	$	10.86	$	7.25	—	—	—
number outstanding at end of period (000 omitted)		225		298		342		440		449		348		69	—	—	—
Thrivent Partner Healthcare Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—	—	—	—
value at end of period	$	8.89		—		—		—		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		122		—		—		—		—		—		—	—	—	—
Thrivent Partner Natural Resources Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—	—	—	—
value at end of period	$	5.69		—		—		—		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		200		—		—		—		—		—		—	—	—	—
Thrivent Partner Emerging Markets Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—	—	—	—
value at end of period	$	5.60		—		—		—		—		—		—	—	—	—
number outstanding at end of period (000 omitted)		75		—		—		—		—		—		—	—	—	—

39

APPENDIX A—CONDENSED FINANCIAL INFORMATION

Year ended Dec. 31,	2008		2007		2006		2005		2004		2003		2002		2001		2000		1999
Thrivent Real Estate Securities Subaccount (April 30, 2003)
Accumulation unit:
value at beginning of period	$	21.11	$	25.66	$	19.33	$	17.26	$	12.91	$	10.00		—		—		—		—
value at end of period	$	13.10	$	21.11	$	25.66	$	19.33	$	17.26	$	12.91		—		—		—		—
number outstanding at end of period (000 omitted)		979		1,334		1,920		2,331		2,006		813		—		—		—		—
Thrivent Partner Utilities Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	6.99		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		95		—		—		—		—		—		—		—		—		—
Thrivent Partner Small Cap Growth Subaccount (November 30, 2001)
Accumulation unit:
value at beginning of period	$	14.64	$	13.64	$	12.25	$	11.92	$	10.82	$	7.61	$	10.54	$	10.00		—		—
value at end of period	$	8.22	$	14.64	$	13.64	$	12.25	$	11.92	$	10.82	$	7.61	$	10.54		—		—
number outstanding at end of period (000 omitted)		601		718		892		1,108		1,138		1,462		1,692		427		—		—
Thrivent Partner Small Cap Value Subaccount (April 30, 2003)
Accumulation unit:
value at beginning of period	$	20.73	$	21.18	$	17.62	$	16.99	$	14.05	$	10.00		—		—		—		—
value at end of period	$	14.96	$	20.73	$	21.18	$	17.62	$	16.99	$	14.05		—		—		—		—
number outstanding at end of period (000 omitted)		482		606		754		878		759		212		—		—		—		—
Thrivent Small Cap Stock Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	16.12	$	15.36	$	13.77	$	12.79	$	10.69	$	7.71	$	10.00		—		—		—
value at end of period	$	9.96	$	16.12	$	15.36	$	13.77	$	12.79	$	10.69	$	7.71		—		—		—
number outstanding at end of period (000 omitted)		992		1,291		1,568		1,562		1,077		630		286		—		—		—
Thrivent Small Cap Index Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	15.05	$	15.30	$	13.48	$	12.70	$	10.52	$	7.69	$	10.00		—		—		—
value at end of period	$	10.26	$	15.05	$	15.30	$	13.48	$	12.70	$	10.52	$	7.69		—		—		—
number outstanding at end of period (000 omitted)		840		1,134		1,395		1,827		1,829		1,380		695		—		—		—
Thrivent Mid Cap Growth Subaccount II (November 30, 2001)
Accumulation unit:
value at beginning of period	$	12.92	$	10.90	$	10.15	$	9.23	$	8.01	$	5.90	$	10.59	$	10.00		—		—
value at end of period	$	7.32	$	12.92	$	10.90	$	10.15	$	9.23	$	8.01	$	5.90	$	10.59		—		—
number outstanding at end of period (000 omitted)		430		587		760		1,084		1,352		1,562		1,856		448		—		—
Thrivent Mid Cap Growth Subaccount (January 30, 1998)
Accumulation unit:
value at beginning of period	$	22.10	$	18.63	$	17.34	$	15.76	$	14.31	$	10.64	$	14.56	$	18.35	$	16.36	$	11.05
value at end of period	$	12.87	$	22.10	$	18.63	$	17.34	$	15.76	$	14.31	$	10.64	$	14.56	$	18.35	$	16.36
number outstanding at end of period (000 omitted)		9,415		11,504		14,793		19,921		24,876		18,406		20,074		21,999		18,257		9,408

40

APPENDIX A—CONDENSED FINANCIAL INFORMATION

Year ended Dec. 31,	2008		2007		2006		2005		2004		2003		2002		2001		2000		1999
Thrivent Partner Mid Cap Value Subaccount (April 29, 2005)
Accumulation unit:
value at beginning of period	$	13.38	$	13.12	$	11.46	$	10.00		—		—		—		—		—		—
value at end of period	$	8.60	$	13.38	$	13.12	$	11.46		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		237		267		206		131		—		—		—		—		—		—
Thrivent Mid Cap Stock Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	16.54	$	15.82	$	14.11	$	12.25	$	10.57	$	8.08	$	10.00		—		—		—
value at end of period	$	9.69	$	16.54	$	15.82	$	14.11	$	12.25	$	10.57	$	8.08		—		—		—
number outstanding at end of period (000 omitted)		1,114		1,465		1,672		1,462		603		350		196		—		—		—
Thrivent Mid Cap Index Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	15.69	$	14.74	$	13.57	$	12.22	$	10.67	$	8.00	$	10.00		—		—		—
value at end of period	$	9.89	$	15.69	$	14.74	$	13.57	$	12.22	$	10.67	$	8.00		—		—		—
number outstanding at end of period (000 omitted)		831		1,096		1,331		1,792		1,702		1,243		675		—		—		—
Thrivent Partner Worldwide Allocation Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	6.05		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		383		—		—		—		—		—		—		—		—		—
Thrivent Partner International Stock Subaccount (January 18, 1996)
Accumulation unit:
value at beginning of period	$	19.77	$	18.08	$	15.04	$	13.37	$	11.69	$	9.01	$	11.03	$	14.12	$	17.02	$	12.83
value at end of period	$	11.51	$	19.77	$	18.08	$	15.04	$	13.37	$	11.69	$	9.01	$	11.03	$	14.12	$	17.02
number outstanding at end of period (000 omitted)		9,042		11,638		14,434		18,158		19,152		19,339		21,401		23,249		22,302		17,359
Thrivent Partner Socially Responsible Stock Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	6.45		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		15		—		—		—		—		—		—		—		—		—
Thrivent Partner All Cap Growth Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	5.30		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		55		—		—		—		—		—		—		—		—		—
Thrivent Partner All Cap Value Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	5.54		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		78		—		—		—		—		—		—		—		—		—

41

APPENDIX A—CONDENSED FINANCIAL INFORMATION

Year ended Dec. 31,	2008		2007		2006		2005		2004		2003		2002		2001		2000		1999
Thrivent Partner All Cap Subaccount (November 30, 2001)
Accumulation unit:
value at beginning of period	$	13.73	$	11.53	$	10.10	$	8.63	$	7.67	$	6.82	$	10.30	$	10.00		—		—
value at end of period	$	7.75	$	13.73	$	11.53	$	10.10	$	8.63	$	7.67	$	6.82	$	10.30		—		—
number outstanding at end of period (000 omitted)		1,585		2,073		2,267		2,558		2,581		2,901		3,259		502		—		—
Thrivent Large Cap Growth Subaccount II (November 30, 2001)
Accumulation unit:
value at beginning of period	$	12.19	$	10.58	$	10.02	$	9.46	$	8.89	$	7.32	$	10.08	$	10.00		—		—
value at end of period	$	7.00	$	12.19	$	10.58	$	10.02	$	9.46	$	8.89	$	7.32	$	10.08		—		—
number outstanding at end of period (000 omitted)		503		680		923		1,277		1,563		1,782		2,077		471		—		—
Thrivent Large Cap Growth Subaccount (February 3, 1994)
Accumulation unit:
value at beginning of period	$	63.31	$	54.83	$	51.94	$	49.07	$	46.08	$	35.70	$	51.57	$	64.49	$	68.60	$	48.27
value at end of period	$	36.32	$	63.31	$	54.83	$	51.94	$	49.07	$	46.08	$	35.70	$	51.57	$	64.49	$	68.60
number outstanding at end of period (000 omitted)		7,685		9,471		12,248		16,269		19,881		22,487		25,286		30,409		29,904		27,300
Thrivent Partner Growth Stock Subaccount (November 30, 2001)
Accumulation unit:
value at beginning of period	$	13.83	$	12.80	$	11.43	$	10.87	$	10.00	$	7.71	$	10.15	$	10.00		—		—
value at end of period	$	7.91	$	13.83	$	12.80	$	11.43	$	10.87	$	10.00	$	7.71	$	10.15		—		—
number outstanding at end of period (000 omitted)		1,326		1,861		2,180		2,886		3,079		2,887		2,899		504		—		—
Thrivent Large Cap Value Subaccount (November 30, 2001)
Accumulation unit:
value at beginning of period	$	14.12	$	13.64	$	11.61	$	10.97	$	9.72	$	7.73	$	10.13	$	10.00		—		—
value at end of period	$	9.17	$	14.12	$	13.64	$	11.61	$	10.97	$	9.72	$	7.73	$	10.13		—		—
number outstanding at end of period (000 omitted)		4,956		6,476		7,939		9,641		9,212		8,084		7,340		557
Thrivent Large Cap Stock Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	12.83	$	12.06	$	10.89	$	10.46	$	9.74	$	8.12	$	10.00		—		—		—
value at end of period	$	7.91	$	12.83	$	12.06	$	10.89	$	10.46	$	9.74	$	8.12		—		—		—
number outstanding at end of period (000 omitted)		2,610		3,477		4,342		5,528		4,409		2,709		823		—		—		—
Thrivent Large Cap Index Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	13.99	$	13.45	$	11.79	$	11.38	$	10.41	$	8.21	$	10.00		—		—		—
value at end of period	$	8.70	$	13.99	$	13.45	$	11.79	$	11.38	$	10.41	$	8.21		—		—		—
number outstanding at end of period (000 omitted)		1,909		2,574		3,082		4,005		3,792		2,463		1,082		—		—		—
Thrivent Equity Income Plus Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	6.99		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		56		—		—		—		—		—		—		—		—		—

42

APPENDIX A—CONDENSED FINANCIAL INFORMATION

Year ended Dec. 31,	2008		2007		2006		2005		2004		2003		2002		2001		2000		1999
Thrivent Balanced Subaccount (April 30, 2003)
Accumulation unit:
value at beginning of period	$	13.55	$	12.99	$	11.79	$	11.47	$	10.73	$	9.26	$	10.00		—		—		—
value at end of period	$	9.91	$	13.55	$	12.99	$	11.79	$	11.47	$	10.73	$	9.26		—		—		—
number outstanding at end of period (000 omitted)		1,116		1,534		1,893		2,594		2,551		1,890		1,038		—		—		—
Thrivent High Yield Subaccount (February 3, 1994)
Accumulation unit:
value at beginning of period	$	31.16	$	30.66	$	28.11	$	27.32	$	25.08	$	19.81	$	21.93	$	23.02	$	29.28	$	26.78
value at end of period	$	24.33	$	31.16	$	30.66	$	28.11	$	27.32	$	25.08	$	19.81	$	21.93	$	23.02	$	29.28
number outstanding at end of period (000 omitted)		5,058		6,421		8,370		11,171		13,872		15,573		17,288		21,242		21,986		21,383
Thrivent Diversified Income Plus Subaccount1 (April 30, 2002)
Accumulation unit:
value at beginning of period	$	14.83	$	15.14	$	13.40	$	13.08	$	12.25	$	9.87	$	10.00		—		—		—
value at end of period	$	11.26	$	14.83	$	15.14	$	13.40	$	13.08	$	12.25	$	9.87		—		—		—
number outstanding at end of period (000 omitted)		964		1,330		989		674		832		746		348		—		—		—
Thrivent Partner Socially Responsible Bond Subaccount (April 30, 2008)
Accumulation unit:
value at beginning of period	$	10.00		—		—		—		—		—		—		—		—		—
value at end of period	$	10.19		—		—		—		—		—		—		—		—		—
number outstanding at end of period (000 omitted)		18		—		—		—		—		—		—		—		—		—
Thrivent Income Subaccount (February 3, 1994)
Accumulation unit:
value at beginning of period	$	31.93	$	31.10	$	29.83	$	29.48	$	28.46	$	26.52	$	25.35	$	23.88	$	21.87	$	22.57
value at end of period	$	28.15	$	31.93	$	31.10	$	29.83	$	29.48	$	28.46	$	26.52	$	25.35	$	23.88	$	21.87
number outstanding at end of period (000 omitted)		5,215		6,664		8,412		11,227		13,903		16,802		20,314		21,672		18,875		18,691
Thrivent Bond Index Subaccount (April 30, 2002)
Accumulation unit:
value at beginning of period	$	12.26	$	11.73	$	11.40	$	11.28	$	10.98	$	10.71	$	10.00		—		—		—
value at end of period	$	12.02	$	12.26	$	11.73	$	11.40	$	11.28	$	10.98	$	10.71		—		—		—
number outstanding at end of period (000 omitted)		1,200		1,421		1,667		2,148		2,356		2,262		1,695		—		—		—
Thrivent Limited Maturity Bond Subaccount (November 30, 2001)
Accumulation unit:
value at beginning of period	$	11.60	$	11.28	$	10.91	$	10.82	$	10.74	$	10.39	$	9.93	$	10.00		—		—
value at end of period	$	10.74	$	11.60	$	11.28	$	10.91	$	10.82	$	10.74	$	10.39	$	9.93		—		—
number outstanding at end of period (000 omitted)		3,236		4,261		5,240		6,762		7,619		7,456		9,283		1,781		—		—
Thrivent Mortgage Securities Subaccount (April 30, 2003)
Accumulation unit:
value at beginning of period	$	11.30	$	10.86	$	10.49	$	10.40	$	10.11	$	10.00		—		—		—		—
value at end of period	$	10.62	$	11.30	$	10.86	$	10.49	$	10.40	$	10.11		—		—		—		—
number outstanding at end of period (000 omitted)		345		484		645		891		800		495		—		—		—		—
Thrivent Money Market Subaccount (February 3, 1994)
Accumulation unit:
value at beginning of period	$	1.98	$	1.91	$	1.84	$	1.81	$	1.81	$	1.81	$	1.81	$	1.76	$	1.67	$	1.61
value at end of period	$	2.02	$	1.98	$	1.91	$	1.84	$	1.81	$	1.81	$	1.81	$	1.81	$	1.76	$	1.67
number outstanding at end of period (000 omitted)		42,869		41,625		36,659		32,089		39,871		58,096		101,665		128,732		86,928		88,495

¹ Formerly known as Thrivent High Yield Subaccount II.

43

No person has been given the authority to give any information or to make any representations other than those contained in these prospectuses. If given or made, such information or representations must not be relied upon as having been authorized. These prospectuses do not constitute an offer to any person in a state where it is unlawful to make such an offer.

The variable annuity contract described herein is issued by Thrivent Financial for Lutherans, 625 Fourth Avenue South, Minneapolis, MN 55415, and distributed by Thrivent Investment Management Inc., 625 Fourth Avenue South, Minneapolis, MN 55415, a subsidiary of Thrivent Financial for Lutherans.

VP63-1 R4-09 Contract Form W2-BA-FPVA-1

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statement of Additional Information

Dated April 30, 2009

For

Flexible Premium Deferred

Variable Annuity Contract

Issued by

THRIVENT FINANCIAL FOR LUTHERANS

Service Center:	Corporate Office:
4321 North Ballard Road	625 Fourth Avenue South
Appleton, WI 54919-0001	Minneapolis, MN 55415-1665
Telephone: 800-847-4836	Telephone: 800-847-4836
E-mail: mail@thrivent.com	E-mail: mail@thrivent.com

This Statement of Additional Information (“SAI”) is not a prospectus, but should be read in conjunction with the Prospectus dated April 30, 2009 (the “Prospectus”) for Thrivent Variable Annuity Account B (the “Variable Account”) describing a flexible premium deferred variable annuity contract (the “Contract”) previously offered by Thrivent Financial for Lutherans (“Thrivent Financial”) to persons eligible for membership in Thrivent Financial. Much of the information contained in this SAI expands upon subjects discussed in the Prospectus. A copy of the Prospectus may be obtained by writing to us at 4321 North Ballard Road, Appleton, WI 54919, by calling 800-THRIVENT (847-4836), or by accessing the Securities and Exchange Commission’s Web site at www.sec.gov.

Capitalized terms used in this SAI that are not otherwise defined herein shall have the meanings given to them in the Prospectus.

TABLE OF CONTENTS

	PAGE
INTRODUCTION	2
PRINCIPAL UNDERWRITER	2
STANDARD AND POOR’S DISCLAIMER	2
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND FINANCIAL STATEMENTS	3

1

INTRODUCTION

The Contract was issued by Thrivent Financial. Thrivent Financial, a fraternal benefit society owned and operated for its members, was organized under Internal Revenue Code section 501(c)(8) and established in 1902 under the laws of the State of Wisconsin. Thrivent Financial is currently licensed to transact life insurance business in all 50 states and the District of Columbia. The Contract may have been sold to or in connection with retirement plans that may or may not qualify for special federal tax treatment under the Internal Revenue Code. Annuity payments under the Contract are deferred until a selected later date.

Premiums will be allocated, as designated by the Contract Owner, to one or more Subaccounts of the Variable Account, a separate account of Thrivent Financial and/or to the Fixed Account. The assets of each Subaccount will be invested solely in a corresponding Portfolio of Thrivent Series Fund, Inc. ( a “Fund”), which is an open-end management investment company (commonly known as a “mutual fund”). The prospectus for the Fund that accompanies the Prospectus describes the investment objectives and attendant risks of the Portfolios of the Fund.

Additional Subaccounts (together with the related additional Portfolios) may be added in the future. The Accumulated Value of the Contract and, except to the extent fixed amount annuity payments are elected by the Contract Owner, the amount of annuity payments will vary, primarily based on the investment experience of the Portfolios whose shares are held in the Subaccounts designated. Premiums allocated to the Fixed Account will accumulate at fixed rates of interest declared by Thrivent Financial.

PRINCIPAL UNDERWRITER

Thrivent Investment Management Inc., 625 Fourth Avenue South, Minneapolis, Minnesota 55415, an indirect subsidiary of Thrivent Financial, is a registered broker-dealer and acts as principal underwriter and distributor of the Contracts pursuant to a distribution agreement with us. Thrivent Investment Management Inc. also acts as the distributor of a number of other variable annuity and variable life insurance contracts we offer. The Contract is no longer sold but we continue to take premium payments.

From time to time, Thrivent Financial may offer to exchange this Contract offered in this Prospectus for the Flexible Premium Deferred Variable Annuity contract issued by us in another prospectus (as part of Thrivent Variable Annuity Account I). No surrender charge will apply upon an exchange of Contracts pursuant to this exchange offer. In addition, as part of the exchange offer, the New Contracts will be deemed to have been issued on the same issue date as the Current Contract for purposes of computing the applicable surrender charge.

Thrivent Financial paid underwriting commissions for the last three fiscal years as shown below. Of these amounts, Thrivent Investment Management retained $0.

2008		2007		2006
$	4,126,872	$	4,658,217	$	4,178,386

STANDARD AND POOR’S DISCLAIMER

The Contracts are not sponsored, endorsed, sold or promoted by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”). S&P makes no representation or warranty, express or implied, to the owners of the Contracts or any member of the public regarding the advisability of investing in securities generally or in the Contracts particularly or the ability of the S&P MidCap 400 Index, S&P 500 or the S&P SmallCap 600 Indexes to track general stock market performance. S&P’s only relationship to Thrivent Financial is the licensing of certain trademarks and trade names of S&P and of the S&P MidCap 400 Index, S&P 500 and S&P 600 SmallCap Indexes which are determined composed and calculated by the S&P without regard to the Licensee or the Contracts. S&P is not responsible for, and has not participated in, the determination of the prices

2

and amount of the Contract or the timing of the issuance or sale of the Contracts or in the determination or calculation of the equation by which the Contract is to be converted into cash. S&P has no obligation or liability in connection with administration, marketing or trading of the Contracts.

S&P does not guarantee the accuracy and/or the completeness of the S&P MidCap 400 Index, S&P 500 or the S&P 600 SmallCap indexes or any data included therein and S&P shall have no liability for any errors, omissions, or interruptions therein. S&P makes no warranty, express or implied, as to results to be obtained by AAL, owners of the Contracts, or any other person/entity from the use of the S&P MidCap 400 Index, S&P 500 or the S&P 600 SmallCap indexes or any data included therein. S&P makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the S&P MidCap 400 Index, S&P 500® or the S&P 600 SmallCap indexes or any data included therein. Without limiting any of the foregoing, in no event shall S&P have liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND FINANCIAL STATEMENTS

The consolidated balance sheets of Thrivent Financial as of December 31, 2008 and 2007, as well as the related consolidated statements of operations, members’ equity and cash flows for each of the three years in the period ended December 31, 2008, appearing in this SAI and Registration Statement, have been audited by Ernst & Young LLP, independent registered public accounting firm, whose address is 220 south Sixth Street, Suite 1400, Minneapolis, Minnesota 55402, as set forth in their report thereon appearing elsewhere herein and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The financial statements of Thrivent Variable Annuity Account B at December 31, 2008 and for the periods indicated therein, appearing in this SAI and Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The financial statements of Thrivent Financial included in this SAI and Registration Statement should be considered as bearing only upon the ability of Thrivent Financial to meet its obligations under the Contracts. The value of the interests of owners and beneficiaries under the Contracts are affected primarily by the investment results of the Subaccounts of the Variable Account.

3

Report of Independent Registered Public Accounting Firm

The Board of Directors

Thrivent Financial for Lutherans

We have audited the accompanying consolidated balance sheets of Thrivent Financial for Lutherans (“Thrivent Financial”) as of December 31, 2008 and 2007, and the related consolidated statements of operations, members’ equity and cash flows for each of the three years in the period ended December 31, 2008. These financial statements are the responsibility of Thrivent Financial’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of Thrivent Financial’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Thrivent Financial at December 31, 2008 and 2007, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2008, in conformity with U.S. generally accepted accounting principles.

February 10, 2009

F-1

Thrivent Financial for Lutherans

Consolidated Balance Sheets

As of December 31, 2008 and 2007

(in millions)

	2008			2007
Assets
Fixed maturity securities, at fair value	$	25,572		$	28,637
Equity securities, at fair value		970			1,529
Mortgage loans		7,689			7,406
Contract loans		1,241			1,238
Short-term investments		1,419			1,922
Amounts due from brokers		27			20
Other investments		1,488			1,197
Total investments		38,406			41,949
Cash and cash equivalents		1,130			824
Accrued investment income		372			373
Receivables		181			189
Deferred acquisition costs		2,541			2,152
Property and equipment, net		167			147
Other assets		30			33
Assets held in separate accounts		9,282			13,987
Total Assets	$	52,109		$	59,654
Liabilities
Future contract benefits	$	14,662		$	13,786
Contractholder funds		22,204			21,468
Unpaid claims and claim expenses		214			208
Amounts due to brokers		369			670
Securities lending obligation		831			1,714
Other liabilities		699			578
Liabilities related to separate accounts		9,282			13,987
Total Liabilities		48,261			52,411
Members’ Equity
Retained earnings		6,880			7,212
Accumulated other comprehensive income (loss)		(3,032	)		31
Total Members’ Equity		3,848			7,243
Total Liabilities and Members’ Equity	$	52,109		$	59,654

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

F-2

Thrivent Financial for Lutherans

Consolidated Statements of Operations

For the Years Ended December 31, 2008, 2007 and 2006

(in millions)

	2008			2007		2006
Revenues
Premiums	$	1,355		$	1,317	$	1,256
Net investment income		2,328			2,384		2,265
Realized investment gains (losses), net		(484	)		115		117
Contract charges		629			657		624
Other revenue		305			321		271
Total Revenues		4,133			4,794		4,533
Benefits and Expenses
Contract claims and other benefits		1,270			1,218		1,167
Increase in contract reserves		693			569		523
Interest credited		1,038			1,029		1,025
Dividends to members		329			293		256
Total benefits		3,330			3,109		2,971
Underwriting, acquisition and insurance expenses		596			642		647
Amortization of deferred acquisition costs		358			243		218
Fraternal benefits and expenses		181			188		185
Total expenses		1,135			1,073		1,050
Total Benefits and Expenses		4,465			4,182		4,021
Net Income (Loss)	$	(332	)	$	612	$	512

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

F-3

Thrivent Financial for Lutherans

Consolidated Statements of Members’ Equity

For the Years Ended December 31, 2008, 2007 and 2006

(in millions)

	Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance as of January 1, 2006	$	6,088		$	334		$	6,422
Comprehensive Income (Loss):
Net income		512			—			512
Other comprehensive loss		—			(70	)		(70	)
Total comprehensive income								442
Balance as of December 31, 2006		6,600			264			6,864
Comprehensive Income (Loss):
Net income		612			—			612
Other comprehensive loss		—			(233	)		(233	)
Total comprehensive income								379
Balance as of December 31, 2007		7,212			31			7,243
Comprehensive Income (Loss):
Net Loss		(332	)		—			(332	)
Other comprehensive loss		—			(3,063	)		(3,063	)
Total comprehensive loss								(3,395	)
Balance as of December 31, 2008	$	6,880		$	(3,032	)	$	3,848

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

F-4

Thrivent Financial for Lutherans

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2008, 2007 and 2006

(in millions)

	2008			2007			2006
Operating Activities
Net income (loss)	$	(332	)	$	612		$	512
Adjustments to reconcile net income to net cash provided by operating activities:
Change in contract liabilities and accruals		882			666			564
Change in contractholder funds		579			(27	)		315
Change in deferred acquisition costs		131			32			11
Realized investment losses (gains), net		484			(115	)		(117	)
Changes in other assets and liabilities		(67	)		19			(2	)
Net Cash Provided by Operating Activities		1,677			1,187			1,283
Investing Activities
Proceeds from sales, maturities or repayments of fixed maturity securities		5,400			9,271			10,433
Cost of fixed maturity securities acquired		(5,509	)		(8,684	)		(10,141	)
Proceeds from sales of equity securities		2,069			1,826			1,360
Cost of equity securities acquired		(2,222	)		(1,902	)		(1,430	)
Proceeds from mortgage loans sold, matured or repaid		925			870			864
Cost of mortgage loans acquired		(1,032	)		(1,113	)		(1,238	)
Sales of fixed maturity securities under mortgage roll program, net		301			287			309
Contract loans repaid (issued), net		(3	)		2			(2	)
Sales of short-term investments, net		503			42			125
Change in collateral held for securities lending		(883	)		3			(225	)
Other, net		(1,077	)		(784	)		(474	)
Net Cash Used in Investing Activities		(1,528	)		(182	)		(419	)
Financing Activities
Universal life and investment contract receipts		2,091			1,327			1,398
Universal life and investment contract withdrawals		(1,934	)		(2,516	)		(2,338	)
Net Cash Provided by (Used in) Financing Activities		157			(1,189	)		(940	)
Net Change in Cash and Cash Equivalents		306			(184	)		(76	)
Cash and Cash Equivalents, Beginning of Year		824			1,008			1,084
Cash and Cash Equivalents, End of Year	$	1,130		$	824		$	1,008

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

F-5

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2008, 2007 and 2006

Note 1. Nature of Operations and Significant Accounting Policies

Nature of Operations

Thrivent Financial for Lutherans (“Thrivent Financial”) is a fraternal benefit society providing to its members life insurance and retirement products, disability income and long-term care insurance as well as Medicare supplement insurance. Thrivent Financial is licensed to conduct business throughout the United States and distributes its products to its members through a network of career financial representatives. Thrivent Financial also offers its members additional related financial products and services, such as investment funds and banking and trust services, through its subsidiaries and affiliates.

Significant Accounting Policies

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

Principles of Consolidation

The consolidated financial statements include the accounts of Thrivent Financial and its wholly owned subsidiaries and affiliated entities that are subject to consolidation, which include a stock life insurance company, a broker-dealer, a registered investment advisor, a bank, certain investment funds, a real estate development company, a transfer agent and a property and casualty insurance agency. All significant intercompany transactions have been eliminated.

Use of Estimates

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

The significant accounting practices used in preparation of the consolidated financial statements are summarized as follows:

Investments

Fixed maturity securities:  Investments in fixed maturity securities are classified as either available for sale or as trading, and are carried at fair value. Unrealized gains and losses on securities within the available-for-sale portfolio are included as a component of other comprehensive income, while the change in fair value on securities within the trading portfolio are recognized in the Consolidated Statements of Operations as a component of realized investment gains and losses. Discounts or premiums on fixed maturity securities are amortized over the term of the securities using the effective interest method.

Equity securities:  Investments in equity securities are classified as available for sale and carried at fair value.

Mortgage loans:  Mortgage loans are generally stated at their unpaid principal balances, adjusted for premium and discount amortization and an allowance for uncollectible balances. Discounts or premiums are amortized over the term of the loans using the effective interest method.

F-6

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 1. Nature of Operations and Significant Accounting Policies, continued

Investments, continued

Contract loans:  Contract loans are generally carried at their aggregate unpaid balances.

Short-term investments:  Short-term investments are carried at amortized cost, which approximates fair value. Short-term investments consist primarily of collateral on loaned securities (which is invested in an affiliated money market mutual fund), short-term government securities and corporate notes. Short-term investments have contractual maturities of 12 months or less at the time of acquisition.

Other investments:  Other investments consist primarily of equity limited partnerships, real estate joint ventures, derivative instruments and real estate. Real estate joint ventures and equity limited partnerships are valued using both the equity method and internal valuation models. Derivatives are carried at fair market value. Real estate is valued at cost plus capital expenditures less accumulated depreciation.

Loaned securities:  Securities loaned under Thrivent Financial’s securities lending agreement are included in the Consolidated Balance Sheets. Thrivent Financial generally receives cash collateral in an amount that is in excess of the market value of the securities loaned, and the cash collateral is invested in a segregated affiliated money market mutual fund included in short-term investments on the Consolidated Balance Sheets. An obligation is also recognized for the amount of the collateral and is included in the Consolidated Balance Sheets. Market values of securities loaned and collateral are monitored daily, and additional collateral is obtained as necessary.

Mortgage dollar roll program:  Thrivent Financial uses a mortgage dollar roll program to enhance the yield on its mortgage-backed securities (“MBS”). MBS dollar rolls are similar to repurchase agreements, whereby Thrivent Financial sells a mortgage-backed security and subsequently enters into a commitment to purchase another security at a specified later date. Thrivent Financial’s mortgage dollar roll program generally includes a series of MBS dollar rolls extending for more than a year. Thrivent Financial had $337 million and $639 million in the mortgage dollar roll program outstanding as of December 31, 2008 and 2007, respectively.

Unrealized investment gains and losses:  Unrealized investment gains and losses on securities classified as available for sale, net of related deferred acquisition costs and tax effects, are accounted for as a direct increase or decrease to the accumulated other comprehensive income component of members’ equity.

Realized investment gains and losses:  Realized investment gains and losses on sales of securities are determined using an average cost method. Changes in fair value of fixed maturity securities within the trading portfolio are included as a component of realized investment gains and losses. Thrivent Financial periodically reviews its securities portfolios and evaluates those securities where the current fair value is less than amortized cost for indicators that the decline in value is other-than-temporary. Factors considered in the evaluation include the following: 1) Thrivent Financial’s ability to collect all amounts due according to the contractual terms of the debt security; 2) the financial condition of the issuer; 3) the near-term prospects of the issuer; 4) the length of time of the impairment; 5) the extent of the impairment; 6) Thrivent Financial’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery in the market; 7) Thrivent Financial’s intent to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in the market. Investments that are determined to be other-than-temporarily impaired are written down to fair value, and the write-down is included in realized investment gains and losses in the Consolidated Statements of Operations. Changes in the allowances for mortgage loans and real estate are also included with realized investment gains and losses.

F-7

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 1. Nature of Operations and Significant Accounting Policies, continued

Cash and Cash Equivalents

Cash and cash equivalents are carried at cost and include all highly liquid investments purchased with an original maturity of three months or less.

Deferred Acquisition Costs

Costs which vary with and are primarily attributable to the production of new and renewal business have been deferred to the extent such costs are deemed recoverable from future profits. Such costs include commissions, selling, selection and contract issue expenses.

For interest-sensitive life, participating life and investment products, these costs are amortized in proportion to estimated margins from interest, mortality and other factors under the contracts. Assumptions used in the amortization of deferred acquisition costs are periodically reviewed and updated as necessary to reflect actual experience. The impact of changes in assumptions is recognized as a component of amortization.

Amortization of acquisition costs for other contracts is charged to expense in proportion to premium revenue recognized.

Property and Equipment

Property and equipment are carried at cost, net of accumulated depreciation. Depreciation expense is determined primarily using the straight-line method over the estimated useful lives of the assets, which range from 3 years for computer hardware and software to 40 years for buildings.

Separate Accounts

Separate account assets and liabilities reported in the accompanying Consolidated Balance Sheets represent funds that are separately administered for variable annuity, variable immediate annuity and variable universal life contracts, and for which the contractholder, rather than Thrivent Financial, bears the investment risk. Fees charged on separate account contractholder deposits are recognized when due. Separate account assets are carried at fair value based on quoted market prices. Operating results of the separate accounts are not included in the Consolidated Statements of Operations. While separate account liability values are not guaranteed, the variable annuity products in the separate accounts include guaranteed minimum death and living benefits. At December 31, 2008 and 2007, reserves totaling $133 million and $13 million, respectively, for these benefits have been recognized.

Contract Liabilities and Accruals

Reserves for future contract benefits for participating life insurance are net level reserves computed using the same interest and mortality assumptions as used to compute cash values.

Reserves for future contract benefits for nonparticipating life insurance are also net level reserves, computed using realistic assumptions as to mortality, interest and withdrawal, with a provision for adverse deviation.

Reserves for health contracts are generally computed using current pricing assumptions. For Medicare supplement, disability income and long-term care contracts, reserves are computed on a net level basis using realistic assumptions, with provision for adverse deviation.

F-8

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 1. Nature of Operations and Significant Accounting Policies, continued

Contract Liabilities and Accruals, continued

Claim reserves are established for future payments not yet due on claims already incurred, reported or unreported, relating primarily to health contracts. These reserves are based on past experience and applicable morbidity tables.

Contractholder Funds

Reserves for future contract benefits for universal life insurance and deferred annuities consist of contract account balances before applicable surrender charges with additional reserves for any death benefits that may exceed contract account balances.

Insurance Revenues and Benefits

For life and some annuity contracts other than universal life or investment contracts, premiums are recognized as revenues over the premium paying period, with reserves for future benefits established on a prorated basis from such premiums.

Revenues for universal life and investment contracts consist of policy charges for the cost of insurance, policy administration and surrender charges assessed during the period. Expenses include interest credited to contract account balances and benefits incurred in excess of contract account balances. Certain profits on limited payment contracts are deferred and recognized over the contract term.

For health contracts, gross premiums are prorated over the contract term of the contracts with the unearned premium included in the contract reserves.

Other Revenue

Other revenue consists primarily of fees earned from investment advisory services performed for the Thrivent family of mutual funds and variable product investment funds.

Dividends to Members

Thrivent Financial’s insurance products are participating in nature. Dividends to members for these policies are recognized over the contract year and are reflected in the Consolidated Statements of Operations. The majority of life insurance contracts, except for universal life and term contracts, begin to receive dividends at the end of the second contract year. Dividends are not currently being paid on most interest-sensitive and health insurance contracts. Dividend scales are approved annually by Thrivent Financial’s Board of Directors.

Fraternal Benefits and Expenses

Fraternal benefits and expenses include all fraternal activities as well as expenses incurred to provide or administer fraternal benefits, and expenses related to Thrivent Financial’s fraternal character. This includes items such as benevolences to help meet the needs of people, educational benefits to raise community and family awareness of issues, church grants and costs necessary to maintain Thrivent Financial’s fraternal branch system. Thrivent Financial conducts its fraternal activities primarily through its chapter system, which is made up of approximately 1,400 chapters, whose members participate in locally sponsored charitable activities.

F-9

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 1. Nature of Operations and Significant Accounting Policies, continued

Income Taxes

Thrivent Financial, as a fraternal benefit society, qualifies as a tax-exempt organization under the Internal Revenue Code. Thrivent Financial’s subsidiaries file a consolidated federal income tax return. The federal income tax provision is based upon amounts estimated to be currently payable and deferred income taxes resulting from temporary differences between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws.

Income tax expense recorded by Thrivent Financial’s subsidiaries for the years ended December 31, 2008, 2007 and 2006 totaled $6 million, $12 million and $10 million, respectively. This tax expense is included as a component of underwriting, acquisition and insurance expenses in the Consolidated Statements of Operations. Thrivent Financial’s subsidiaries had a net deferred tax asset of $4 million as of December 31, 2008 and a net deferred tax liability of $22 million as of December 31, 2007.

New Accounting Standards

In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standard No. 157, Fair Value Measurements, (SFAS No. 157). This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Under this standard fair value is based on an exit price model, whereby value is determined based on a price that would be paid or received to settle a financial instrument. Thrivent Financial adopted the provisions of this standard as of January 1, 2008 and the adoption did not have a significant impact on the consolidated financial statements.

In June 2006, the FASB issued FASB Interpretation 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No.109 (“FIN 48”). This statement clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB Statement of Financial Accounting Standards (“SFAS”) No. 109, Accounting for Income Taxes. Thrivent Financial adopted FIN 48 during 2007, and the adoption did not have a significant impact on the consolidated financial statements.

In September 2006, the FASB issued SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R). This statement requires: (a) recognition of an asset for the funded status, measured as the difference between the fair value of plan assets and the benefit obligation, of defined benefit postretirement plans that are overfunded and a liability for plans that are underfunded, measured as of the employer’s fiscal year end; and (b) recognition of changes in the funded status of defined benefit postretirement plans, other than for the net periodic benefit cost included in net income, in accumulated other comprehensive income. Thrivent Financial adopted SFAS No. 158 during 2007 and the adoption did not have a significant impact on the consolidated financial statements.

In September 2005, the AICPA issued Statement of Position (“SOP”) 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs (“DAC”) in Connection with Modifications or Exchanges of Insurance Contracts. SOP 05-1 provides guidance on accounting by insurance enterprises for DAC on internal replacements of insurance and investment contracts. Thrivent Financial adopted SOP 05-1 during 2007, and the adoption did not have a significant impact on the consolidated financial statements.

In November 2005, the FASB issued FASB Staff Positions (“FSP”) FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments. This FSP provides additional guidance for evaluating impaired securities for indicators on an impairment that is other than temporary. Thrivent Financial adopted FSP FAS 115-1 and FAS 124-1 during 2006, and the adoption did not have a significant impact on the consolidated financial statements.

Reclassifications

Certain prior year balances have been reclassified to conform to the current year presentation.

F-10

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments

Fixed Maturity Securities

The amortized cost and fair value of Thrivent Financial’s investment in fixed maturity securities held in the available for sale portfolio are summarized as follows (in millions):

December 31, 2008	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
Loan-backed obligations of U.S. Government corporations and agencies	$	3,228	$	67	$	3	$	3,292
U.S. Treasury securities and non-loan-backed obligations of U.S. Government corporations and agencies		279		40		—		319
Corporate and other bonds		19,953		274		2,250		17,977
Mortgage- & asset-backed securities		4,423		7		1,137		3,293
Total fixed maturity securities	$	27,883	$	388	$	3,390	$	24,881
December 31, 2007
Loan-backed obligations of U.S. Government corporations and agencies	$	3,632	$	22	$	29	$	3,625
U.S. Treasury securities and non-loan-backed obligations of U.S. Government corporations and agencies		803		34		—		837
Corporate and other bonds		18,504		364		405		18,463
Mortgage- & asset-backed securities		4,979		20		117		4,882
Total fixed maturity securities	$	27,918	$	440	$	551	$	27,807

During 2007, Thrivent Financial established a trading securities portfolio to support investment strategies that involve more frequent purchases and sales of securities. The amount of fixed maturity securities in the trading portfolio at December 31, 2008 and 2007 totaled $691 million and $830 million, respectively. Changes in the fair value of such trading securities are included as a component of realized investment gains and losses and totaled a $68 million gain and a $5 million gain for the years ended December 31, 2008 and 2007, respectively.

The amortized cost and fair value of fixed maturity securities in the available-for-sale portfolio by contractual maturity as of December 31, 2008 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in millions).

	Amortized Cost		Fair Value
Due in one year or less	$	680	$	677
Due after one year through five years		5,956		5,494
Due after five years through ten years		5,717		4,938
Due after ten years		7,879		7,187
Loan-backed obligations of U.S. Government corporations and agencies		3,228		3,292
Mortgage- and asset-backed securities		4,423		3,293
Total fixed maturity securities	$	27,883	$	24,881

F-11

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Equity Securities

The cost and fair value of Thrivent Financial’s investment in equity securities as of December 31 are summarized as follows (in millions):

	2008			2007
Cost	$	1,288		$	1,360
Gross unrealized gains		26			243
Gross unrealized losses		(344	)		(74	)
Fair value	$	970		$	1,529

Included in the equities securities balances discussed above is approximately $79 million and $36 million of investments in mutual funds from the Thrivent Financial mutual fund family as of December 31, 2008 and 2007, respectively.

Aging of Unrealized Losses

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities in the available for sale portfolio have been in a continuous unrealized loss position, as of December 31, 2008 (in millions):

	Less than 12 Months					12 Months or More
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Loan-backed obligations of U.S. Government corporations and agencies	7	$	1	$	—	12	$	227	$	3
U.S. Treasury securities and non-loan-backed obligations of U.S. Government corporations and agencies	2		4		—	—		—		—
Corporate and other bonds	1,773		8,743		1,112	849		4,146		1,138
Mortgage & asset-backed securities	107		1,149		279	183		1,944		858
Total fixed maturity securities	1,889	$	9,897	$	1,391	1,044	$	6,317	$	1,999

As of December 31, 2008, gross unrealized losses on fixed maturity securities in the available-for-sale portfolio totaled $3.4 billion comprising 2,933 issuers. Of this amount, $2.0 billion, comprised of 1,044 issuers, was in the greater-than-twelve-month category. The average unrealized loss per security is $1.2 million as of December 31, 2008.

The following table shows the fair value and gross unrealized losses by length of time that individual equity securities have been in a continuous unrealized loss position, as of December 31, 2008 (in millions):

	Less than 12 Months					12 Months or More
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Equity securities	630	$	923	$	292	21	$	78	$	52

F-12

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Aging of Unrealized Losses, continued

As of December 31, 2008, gross unrealized losses on equity securities totaled $344 million comprising 651 issuers. Of this amount, $52 million, comprised of 21 issuers, was in the greater-than-twelve-month category.

Thrivent Financial performs periodic evaluations of its securities in accordance with its impairment policy in order to determine whether such securities are other-than-temporarily impaired. This review includes an evaluation of each security issuer’s creditworthiness such as its ability to generate operating cash flow and remain current on all debt obligations as well as any changes in its credit ratings from third party agencies. Thrivent Financial also evaluates the severity and duration of any decline in fair value as another indicator of other-than-temporary impairment. Thrivent Financial takes into consideration the current market environment, near-term and long-term asset liability management strategies and target allocation strategies for various asset classes in evaluating the potential need to sell securities that are in an unrealized loss position but where there are no other indications of other-than-temporary impairment. Generally, Thrivent Financial has the ability and intent to hold securities in an unrealized loss position for a period of time sufficient for the security to recover in value, however, if a significant change in the capital markets occurs that affects the overall risk profile of its investment strategies, Thrivent Financial may need to update its assessment of its investment holdings. If in response to changed conditions in the capital markets, Thrivent Financial decides to sell a security in an unrealized loss position, a realized loss is recognized in the period that the decision is made to sell that security.

Based on Thrivent Financial’s current evaluation of its securities in accordance with its impairment policy, a determination was made that the securities summarized above are not other-than-temporarily impaired.

Mortgage Loans

Thrivent Financial invests in mortgage loans, principally involving commercial real estate. Such investments consist of first mortgage liens on completed income-producing properties. The unpaid principal balances of mortgage loans and the allowance for credit losses as of December 31 were as follows (in millions):

	2008			2007
Commercial	$	6,334		$	6,173
Church		983			920
Non-commercial		383			317
		7,700			7,410
Allowance for credit losses		(11	)		(4	)
Total	$	7,689		$	7,406
Maximum loan to value ratio for loans Issued during the year		76	%		75	%

The changes in the allowance for credit losses for the years ended December 31 were as follows (in millions):

	2008		2007			2006
Allowance for credit losses, beginning of year	$	4	$	33		$	32
Net additions (reductions)		7		(29	)		1
Allowance for credit losses, end of year	$	11	$	4		$	33

F-13

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Mortgage Loans, continued

During 2007, Thrivent Financial updated its methodology for determining its allowance for credit losses. The risk factors associated with various classifications of mortgage loans were revised to reflect more current experience. This change in estimate resulted in a reduction of the allowance of approximately $29 million.

Thrivent Financial does not accrue interest income on impaired mortgage loans; rather, income is recognized for these loans when received. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that Thrivent Financial will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. Interest income recognized on impaired mortgage loans totaled $0.6 million, $0.1 million and $0.1 million during the years ended December 31, 2008, 2007 and 2006, respectively.

The distribution of Thrivent Financial’s mortgage loan investments among various geographic regions of the United States as well as by property type as of December 31 was as follows:

	2008		2007
Geographic Region
Pacific	25	%	25	%
South Atlantic	18		19
West North Central	13		13
East North Central	13		13
Mountain	9		9
West South Central	9		9
Mid Atlantic	9		9
Other	4		3
Total	100	%	100	%
Property Type
Industrial	32	%	30	%
Office	19		19
Retail	19		17
Church	14		12
Apartments	5		6
Hotels/Motels	3		2
Other	8		14
Total	100	%	100	%

Derivative Financial Instruments

Thrivent Financial uses derivative financial instruments in the normal course of business to manage investment risks, to reduce interest rate and duration imbalances determined in asset/liability analyses and to offset risks associated with the guaranteed living benefit features of certain variable annuity products. Thrivent Financial does not use hedge accounting treatment for any of its derivative financial instruments.

F-14

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Derivative Financial Instruments, continued

Foreign Currency Swaps

Thrivent Financial utilizes foreign currency swaps to manage the risk associated with changes in the exchange rate of Canadian, Australian and Euro denominated securities. The swaps convert a stream of Canadian dollar, Australian dollar or Euro payments to U.S. dollar payments. The swaps are valued at market value at each reporting period, and the change in the market value is recognized in earnings. No cash is exchanged at the outset of the swaps, and interest payments received are recorded as a component of net investment income.

Total Rate of Return Swaps

Thrivent Financial utilizes total rate of return swaps to enhance the return on pools of collateralized mortgage-backed securities. The swap contracts are generally three months in duration and are valued at market value at each reporting period with the change in market value recognized in earnings. No cash is exchanged at the outset of the swap, and payments on the swap are exchanged monthly and recorded as a component of net investment income.

Futures

Thrivent Financial utilizes futures contracts to manage a portion of the risks associated with the guaranteed living benefit features of certain variable annuity products. Cash paid for the future contract is recorded in other investments. The future contracts are valued at market value at each reporting period, and the change in the market value is recognized in earnings.

Covered Written Call Options

Thrivent Financial sells covered written call option contracts to enhance the return on residential mortgage-backed “to be announced” collateral which it owns. The premium received for these call options is recorded as a liability at market value at each reporting period with the change in market value recognized in earnings. All positions in these contracts are settled at month end. Upon disposition of the options, the gains are recorded as a component of net investment income. During the years ended 2008, 2007 and 2006, $8 million, $14 million and $11 million, respectively, was received in call premium.

Convertible Bonds and Preferred Stocks

Thrivent Financial owns bonds and preferred stocks with convertible options, which are recorded as embedded derivatives. The securities are bifurcated with the option value recorded in other investments. These embedded derivatives are valued at market value at each reporting period, and the change in market value is recognized in earnings.

F-15

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Convertible Bonds and Preferred Stocks, continued

The following table summarizes the carrying value, which equals fair value, and the notional amounts of Thrivent Financial’s derivative financial instruments at December 31 (in millions):

December 31, 2008	Assets				Liabilities
	Carrying Value		Notional Amount		Carrying Value		Notional Amount
Foreign currency swaps	$	10	$	104	$	—	$	—
Total rate of return swaps		—		—		—		—
Credit default swaps		4		10		—		—
Futures		149		148		—		—
Convertible bonds and preferred stocks		219		588		—		—
Total	$	382	$	850	$	—	$	—
December 31, 2007
Foreign currency swaps	$	—	$	—	$	15	$	116
Total rate of return swaps		1		100		—		—
Futures		51		51		—		—
Convertible bonds and preferred stocks		375		669		—		—
Total	$	427	$	820	$	15	$	116

Notional amounts do not represent amounts exchanged by the parties and are therefore not a measure of Thrivent Financial’s exposure. The amounts exchanged are calculated on the basis of the notional amounts and the other terms of the instruments, such as interest rates, exchange rates, security prices, or financial and other indices.

Investment Income

Investment income by type of investment for the years ended December 31 is summarized as follows (in millions):

	2008		2007		2006
Fixed maturity securities, available for sale	$	1,603	$	1,616	$	1,612
Equity securities		57		71		38
Mortgage loans		498		489		468
Contract loans		87		87		87
Other invested assets		112		163		104
		2,357		2,426		2,309
Investment expenses		29		42		44
Net investment income	$	2,328	$	2,384	$	2,265

F-16

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Realized Investment Gains and Losses

Realized investment gains and losses for the years ended December 31 were as follows (in millions):

	2008			2007			2006
Net gains (losses) on sales:
Fixed maturity securities, available for sale:
Gross gains	$	176		$	236		$	184
Gross losses		(259	)		(200	)		(169	)
Equity securities:
Gross gains		101			150			170
Gross losses		(310	)		(69	)		(60	)
Other		105			9			1
		(187	)		126			126
Fixed maturity securities, trading		68			5			—
Provisions for losses:
Fixed maturity securities, available for sale		(259	)		(41	)		(7	)
Equity securities		(35	)		(2	)		—
Mortgage loans and other invested assets		(71	)		27			(2	)
		(365	)		(16	)		(9	)
Realized investment gains (losses), net	$	(484	)	$	115		$	117

During 2008, Thrivent Financial purchased from its affiliated family of mutual funds securities at amortized cost of $23 million. Thrivent Financial subsequently recorded an other-than-temporary impairment of $19 million related to these securities.

Proceeds from the sale of fixed maturity securities in the available-for-sale portfolio, net of mortgage dollar roll transactions, were $4.9 billion, $8.7 billion and $9.8 billion for the years ended December 31, 2008, 2007 and 2006, respectively.

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) as of December 31 are shown below (in millions):

	2008			2007
Unrealized investment gains (losses)	$	(3,317	)	$	63
Deferred acquisition costs adjustment		539			19
Deferred income taxes adjustment		19			1
Pension liability adjustment		(273	)		—
SFAS No. 158 adjustment		—			(52	)
Total	$	(3,032	)	$	31

F-17

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 2. Investments, continued

Other Comprehensive Income (Loss)

The components of other comprehensive income (loss) for the years ended December 31 were as follows (in millions):

	2008			2007			2006
Unrealized investment gains and losses arising during the period on securities available for sale	$	(3,966	)	$	(120	)	$	(35	)
Reclassification adjustment for realized gains and losses included in net income		586			(74	)		(118	)
Change in deferred acquisition costs due to unrealized investment gains and losses		520			14			35
Change in deferred income taxes due to unrealized investment gains and losses		18			(1	)		—
SFAS No. 158 adjustment		—			(52	)		—
Pension liability adjustment		(221	)		—			48
Total other comprehensive loss	$	(3,063	)	$	(233	)	$	(70	)

Note 3. Deferred Acquisition Costs

The changes in deferred acquisition costs for the years ended December 31 were as follows (in millions):

	2008			2007			2006
Balance at beginning of year	$	2,133		$	2,165		$	2,176
Capitalization of acquisition costs		227			211			207
Acquisition costs amortized		(358	)		(243	)		(218	)
		2,002			2,133			2,165
Adjustment for unrealized investment gains and losses		539			19			5
Balance at end of year	$	2,541		$	2,152		$	2,170

Note 4. Property and Equipment

The components of property and equipment as of December 31 were as follows (in millions):

	2008			2007
Buildings	$	151		$	149
Furniture and equipment		276			217
Other		21			22
		448			388
Accumulated depreciation		(281	)		(241	)
Property and equipment, net	$	167		$	147

Depreciation expense for the years ended December 31, 2008, 2007 and 2006 was $43 million, $39 million and $40 million, respectively.

F-18

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 5. Benefit Plans

Pension and Other Postretirement Benefits

Thrivent Financial has a qualified noncontributory defined benefit retirement plan which provides benefits to substantially all home office and field employees upon retirement. Thrivent Financial also provides certain health care and life insurance benefits for substantially all retired home office and field personnel. Thrivent Financial uses a measurement date of December 31 in its benefit plan disclosures.

The components of net periodic pension expense for Thrivent Financial’s qualified retirement and other plans for the years ended December 31 were as follows (in millions):

	Retirement Plan									Other Plans
	2008			2007			2006			2008			2007			2006
Service cost	$	16		$	16		$	17		$	3		$	3		$	2
Interest cost		39			36			35			7			6			6
Expected return on plan assets		(52	)		(49	)		(47	)		—			—			—
Amortization of prior service cost		(1	)		(1	)		(1	)		(1	)		(1	)		(1	)
Other		—			1			3			1			1			1
Periodic cost	$	2		$	3		$	7		$	10		$	9		$	8

The plans’ funded status and the amounts recognized in the consolidated financial statements as of December 31, were as follows (in millions):

	Retirement Plan						Other Plans
	2008			2007			2008			2007
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	638		$	640		$	115		$	106
Service cost		16			16			3			3
Interest cost		39			36			7			6
Actuarial (gain) loss		(25	)		(22	)		7			5
Benefits paid		(31	)		(32	)		(7	)		(5	)
Benefit obligation, end of year		637			638			125			115
Change in plan assets:
Fair value of plan assets, beginning of year		648			633			—			—
Actual return on plan assets		(188	)		47			—			—
Employer contribution		—			—			7			5
Benefits paid		(31	)		(32	)		(7	)		(5	)
Fair value of plan assets, end of year		429			648			—			—
Funded status	$	(208	)	$	10		$	(125	)	$	(115	)
Amounts recognized in accumulated other comprehensive income following adoption of SFAS No. 158:
Prior service credit	$	(5	)	$	(5	)	$	(4	)	$	(5	)
Net Loss		239			24			43			38
Total recognized	$	234		$	19		$	39		$	33
Accumulated benefit obligation	$	584		$	579		$	125		$	114

F-19

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 5. Benefit Plans, continued

Pension and Other Postretirement Benefits, continued

As of December 31, 2008, the accumulated benefit obligation of the retirement plan exceeded the fair value of the assets and as of December 31, 2008 and 2007, the other benefit plans exceeded the fair value of the assets. As a result, a benefit obligation liability was included in other liabilities in the Consolidated Balance Sheets. As of December 31, 2007, the fair value of Thrivent Financial’s retirement plan assets exceeded the accumulated benefit obligation of the plan. As a result, a prepaid pension asset was included in other assets on the Consolidated Balance Sheets.

Thrivent Financial periodically evaluates the long-term earned rate assumption taking into consideration historical performance of the plan’s assets as well as current asset diversification and investment strategy in determining the rate of return assumption used in calculating the plan’s benefit expenses and obligation.

	Retirement Plan				Other Benefits
	2008		2007		2008		2007
Weighted average assumptions at end of year:
Discount rate	6.85	%	6.25	%	6.85	%	6.25	%
Expected return on plan assets	8.50		8.50		n/a		n/a
Rate of compensation increase	4.35		3.75		n/a		n/a

The assumed health care cost trend rate used in measuring the postretirement health care benefit obligation was 8% for pre-65 and 9% for post-65 in 2009, trending down to 5% in 2014. The assumed health care cost trend rates can have a significant impact on the amounts reported. For example, a one-percentage point increase in the rate would increase the 2008 total service and interest cost by $1 million and the postretirement health care benefit obligation by $14 million. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the Act) includes a federal subsidy to sponsors of retirement health care plans that provide a prescription benefit that is at least actuarially equivalent to Medicare Part D. This subsidy has been taken into consideration in the calculation the net periodic postretirement benefit costs and the accumulated postretirement benefit obligation.

Estimated benefit payments for the next five years are as follows: 2009 — $42 million; 2010 — $44 million; 2011 — $46 million; 2012 — $48 million; 2013 — $50 million; and 2014 to 2018 — $287 million.

The assets of Thrivent Financial’s qualified defined benefit plan are held in trust. Thrivent Financial has a benefit plan advisory committee that sets investment guidelines, which are established based on market conditions, risk tolerance, funding requirements and expected benefit payments. A third party oversees the investment allocation process and monitors asset performance. As pension liabilities are long-term in nature, Thrivent Financial employs a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk.

The investment portfolio contains a diversified portfolio of investment categories, including equities and fixed income securities. Securities are also diversified in terms of domestic and international securities, short- and long-term securities, growth and value styles, large cap and small cap stocks, active and passive management and derivative-based styles. With prudent risk tolerance and asset diversification, the plan is expected to meet its pension obligations in the future.

F-20

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 5. Benefit Plans, continued

Pension and Other Postretirement Benefits, continued

The weighted average asset allocations as of December 31 were as follows:

	Pension Asset Allocation				Target Allocation
	2008		2007		2008		2007
Asset Category:
Equity securities	63	%	63	%	60	%	60	%
Fixed income and other securities	37		37		40		40
Total	100	%	100	%	100	%	100	%

The minimum pension contribution required for 2009 under ERISA guidelines will be determined in the first quarter of 2009.

Defined Contribution Plans

Thrivent Financial also provides contributory and noncontributory defined contribution retirement benefits, which cover substantially all home office and field employees. Eligible participants in the 401(k) plan may elect to contribute a percentage of their eligible earnings, and Thrivent Financial will match participant contributions up to 6% of eligible earnings. In addition, Thrivent Financial will contribute a percentage of eligible earnings for participants in a noncontributory plan for field employees.

For the years ended December 31, 2008, 2007 and 2006, Thrivent Financial contributed $24 million, $21 million and $21 million, respectively, to these plans.

As of December 31, 2008 and 2007, $115 million and $118 million, respectively, of the assets of the defined contribution plans were invested in a deposit administration contract issued by Thrivent Financial.

Note 6. Claims Liabilities

Activity in the liabilities for accident and health, long-term care and disability benefits, included in reserves for future policy benefits and claims liabilities for the years ended December 31 is summarized below (in millions):

	2008		2007		2006
Net balance at January 1	$	472	$	435	$	412
Incurred related to:
Current year		214		204		196
Prior years		29		28		8
		243		232		204
Paid related to:
Current year		62		64		64
Prior years		142		131		117
		204		195		181
Net balance at December 31	$	511	$	472	$	435

F-21

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 6. Claims Liabilities, continued

Thrivent Financial uses estimates for determining its liability for accident and health, long-term care and disability benefits, which are based on historical claim payment patterns, and attempts to provide for potential adverse changes in claim patterns and severity. Thrivent Financial annually reviews the claim payment experience to evaluate the methodology and assumptions that are used in determining its estimate of ultimate claims experience. Differences between anticipated claims and actual claims can result in adjustments to liabilities in each year.

Note 7. Reinsurance

Thrivent Financial participates in reinsurance in order to limit its maximum losses and to diversify its exposures. Life and accident and health reinsurance is accomplished through various plans of reinsurance, primarily coinsurance and yearly renewable term. Ceded balances would represent a liability of Thrivent Financial in the event the reinsurers were unable to meet their obligations under the terms of the reinsurance agreements.

Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. The cost of reinsurance related to short-duration contracts is accounted for over the reinsurance contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies.

Reinsurance amounts included in the Consolidated Statements of Operations for the years ended December 31 were as follows (in millions):

	2008			2007			2006
Direct premiums	$	1,407		$	1,363		$	1,296
Reinsurance ceded		(52	)		(46	)		(40	)
Net premiums	$	1,355		$	1,317		$	1,256
Direct contract charges	$	1,302		$	1,236		$	1,181
Reinsurance ceded		(32	)		(18	)		(14	)
Net contract charges	$	1,270		$	1,218		$	1,167
Reinsurance recoveries	$	7		$	7		$	6

Reinsurance contracts do not relieve an insurer from its primary obligation to policyholders. Reinsurance recoverables on life and accident and health claims included in receivables in the Consolidated Balance Sheets as of December 31, 2008 and 2007 were $139 million and $135 million, respectively.

Four reinsurance companies account for approximately 96% of the reinsurance recoverable at December 31, 2008. Thrivent Financial periodically reviews the financial condition of its reinsurers and amounts recoverable in order to evaluate the financial strength of the companies supporting the recoverable balances.

F-22

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 8. Fair Value of Financial Instruments

Fair Value of Financial Instruments Carried at Fair Value

In estimating the fair values for financial instruments carried at fair value, the amount of observable and unobservable inputs used to determine fair value are taken into consideration. Each of the financial instruments have been classified into one of three categories based on that evaluation:

Level 1:	Fair value based on quoted prices for identical assets in active markets that are accessible.
Level 2:	Fair value based on quoted prices for similar instruments in active markets that are accessible; quoted prices for identical or similar instruments in markets that are not active; or model-derived valuations where the significant value driver inputs are observable.
Level 3:	Fair value based on significant value driver inputs that are not observable.

Fixed Maturity Securities

Fair values for fixed maturity securities are primarily based on quoted market prices in active markets where available, or are estimated using values obtained from independent pricing services which utilize market standard methodologies based on market observable inputs.

Equity Securities

The fair values for investments in equity securities are primarily based on quoted market prices in active markets.

Other Investments

Other investments primarily include derivatives and private equity investments. The fair values of futures and equity options are the closing price of their actively traded exchanges. Bond options and swaps have fair values derived from broker quotes that rely on both observable and unobservable inputs. The fair values of private equity investments are valued primarily using internal valuation methodologies designed for specific asset classes.

Separate Account Assets

The fair values for separate account assets are based on quoted market prices in active markets.

The carrying value and estimated fair value of Thrivent Financial’s financial instruments carried at fair value as of December 31 were as follows (in millions):

	2008 Estimated Fair Value								2007 Estimated Fair Value
	Level 1		Level 2		Level 3		Total
Financial instruments carried at fair value:
Fixed maturity securities	$	849	$	20,790	$	3,933	$	25,572	$	28,637
Equity securities		802		167		1		970		1,529
Other investments		4		219		1,205		1,428		1,130
Assets held in separate accounts		9,282		—		—		9,282		13,987
Total	$	10,937	$	21,176	$	5,139	$	37,252	$	45,283

F-23

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 8. Fair Value of Financial Instruments, continued

Fair Value of Financial Instruments Carried at Fair Value, continued

For those financial instruments carried on the consolidated balance sheet at fair value and whose fair value is categorized as Level 3, the following table shows the changes in fair value for the year ended December 31, (in millions):

	Fixed Maturity Securities			Equity Securities			Other Assets		Total
Balance, January 1, 2008	$	4,353		$	11		$	750	$	5,114
Realized gains and losses included in net income		(69	)		(18	)		92		5
Unrealized gains and losses included in other comprehensive income		(478	)		1			5		(472	)
Purchases, sales and maturities, net		127			7			358		492
Transfers in and out of Level 3		—			—			—		—
Balance, December 31, 2008	$	3,933		$	1		$	1,205	$	5,139
Amount of gains (losses) recognized in net income attributable to the change in unrealized gains (losses) related to assets still held at December 31, 2008	$	—		$	—		$	106	$	106

Fair Value of Financial Instruments Not Carried at Fair Value

The following methods and assumptions were used in estimating fair value disclosures for financial instruments not carried at fair value.

Mortgage Loans

The fair values for mortgage loans are estimated using discounted cash flow analyses, based on interest rates currently being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations.

Contract Loans

The carrying amounts for these instruments approximate their fair values.

Short-Term Investments

The carrying amounts for these instruments approximate their fair values.

Other Investments

Other investments not carried at fair value include primarily investments in real estate and real estate joint ventures. The fair values are valued primarily using various market valuation techiniques.

Cash and Cash Equivalents

The carrying amounts for these instruments approximate their fair values.

F-24

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 8. Fair Value of Financial Instruments, continued

Fair Value of Financial Instruments Not Carried at Fair Value, continued

Policyholder account balances

The fair values for investment-type contracts, such as deferred annuities, liabilities related to separate account liabilities, supplementary contracts without life contingencies, deferred income settlement options and refunds on deposit, are estimated to be the cash surrender value payable upon immediate withdrawal.

Liabilities Related to Separate Accounts

The carrying amounts for these instruments reflect the amounts in the separate account assets and approximate their fair values.

Other Liabilities

The fair values for deposit type liabilities, such as interest-bearing withdrawal accounts and fixed-rate certificates of deposit, are based on current market interest rates offered for these products.

The carrying value and estimated fair value of Thrivent Financial’s financial instruments not carried at fair value as of December 31 were as follows (in millions):

	2008				2007
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Mortgage loans	$	7,689	$	7,409	$	7,406	$	7,553
Contract loans		1,241		1,241		1,238		1,238
Short-term investments		1,419		1,419		1,922		1,922
Other investments		60		94		67		102
Cash and cash equivalents		1,130		1,130		824		824
Financial Liabilities:
Policyholder account balances		12,475		12,700		11,949		11,873
Separate account liabilities		9,282		9,282		13,987		13,987
Other		479		480		431		421

The results of the valuation methods presented in this footnote are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. As a result, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the financial instrument. These fair values are for certain financial instruments of Thrivent Financial; accordingly, the aggregate fair value amounts presented do not represent the underlying value of Thrivent Financial.

Note 9. Commitments and Contingent Liabilities

Litigation and Other Proceedings

Thrivent Financial is involved in various lawsuits, contractual matters and other contingencies that have arisen from the normal course of business. Thrivent Financial assesses its exposure to these matters periodically and adjusts its provision accordingly. As of December 31, 2008, Thrivent Financial believes adequate provision has been made for any potential losses that may result from these matters.

F-25

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 9. Commitments and Contingent Liabilities, continued

Financial Instruments

Thrivent Financial is a party to financial instruments with on and off-balance sheet risk in the normal course of business. These instruments involve, to varying degrees, elements of credit, interest rate equity price or liquidity risk in excess of the amount recognized in the Consolidated Balance Sheets. Thrivent Financial’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and financial guarantees is limited to the contractual amount of these instruments.

Commitments to Extend Credit

Thrivent Financial has commitments to extend credit for mortgage loans, church loans and other lines of credit at market interest rates in the amount of $142 million and $1,151 million as of December 31, 2008 and 2007, respectively. Commitments to purchase other invested assets were $1,502 million and $1,073 million as of December 31, 2008 and 2007, respectively.

Financial Guarantees

Thrivent Financial has entered into an agreement to purchase certain debt obligations of a third party civic organization, totaling $37 million, in the event certain conditions as defined in the agreement occur. This agreement is secured by the assets of the third party.

Leases

Thrivent Financial has operating leases for certain office equipment and real estate. Rental expense for these items totaled $9 million, $13 million and $8 million for the years ended December 31, 2008, 2007 and 2006, respectively. Future minimum aggregate rental commitments as of December 31, 2008 for operating leases were as follows: 2009 — $5 million; 2010 — $5 million; 2011 — $3 million; 2012 — $2 million; and 2013 — $1 million.

Fraternal Commitment

Thrivent Financial’s commitment to Habitat for Humanity to help build additional homes, which began in 2006, is expected to provide funding of approximately $125 million over a four-year period as certain milestones are achieved. Thrivent Financial has funded approximately $32 million, $30 million and $26 million of this commitment during the years ended December 31, 2008, 2007 and 2006, respectively.

Note 10. Synopsis of Statutory Financial Results

The accompanying financial statements differ from those prepared in accordance with statutory accounting practices prescribed or permitted by the primary states regulating Thrivent Financial. Prescribed accounting practices are included in the National Association of Insurance Commissioner’s Accounting Practices and Procedures Manual. Permitted practices are accounting practices that may deviate from prescribed practices upon the approval of the primary states regulating Thrivent Financial. The synopsis of statutory financial results is included to satisfy certain state reporting requirements for fraternal benefit societies.

The following describes the more significant statutory accounting policies that are different from GAAP accounting policies.

F-26

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 10. Synopsis of Statutory Financial Results, continued

Fixed Maturity Securities

For statutory purposes, investments in fixed maturity securities are reported at amortized cost.

Acquisition Costs

Costs incurred to acquire new business are charged to operations as incurred.

Contract Liabilities

Liabilities for future contract benefits and expenses are determined using statutorily prescribed rates for mortality and interest.

Non-Admitted Assets

Certain assets, primarily furniture, equipment and agents’ debit balances, are charged directly to members’ equity and excluded from the Consolidated Balance Sheets.

Interest Maintenance Reserve

Certain realized investment gains and losses for fixed maturity securities sold prior to their maturity are deferred and amortized into operating results over the remaining maturity of the sold security.

Asset Valuation Reserve

A reserve, charged directly to members’ equity, is maintained based on certain risk factors applied to invested asset classes.

Premiums and Withdrawals

Funds deposited and withdrawn on universal life and investment-type contracts are recorded in the Consolidated Statements of Operations.

Consolidation

Subsidiaries are not consolidated into the statutory results; rather, the equity method of accounting for the ownership of subsidiaries is used, with the change in the value of the subsidiaries reflected as a direct adjustment of members’ equity.

Summarized statutory-basis financial information as of December 31, 2008 and 2007 and for the years ended December 31, 2008, 2007 and 2006 for Thrivent Financial is as follows (in millions):

	2008		2007
Admitted assets	$	49,470	$	53,474
Liabilities	$	45,535	$	49,040
Surplus		3,935		4,434
Total liabilities and surplus	$	49,470	$	53,474

F-27

Thrivent Financial for Lutherans

Notes to Consolidated Financial Statements, continued

Note 10. Synopsis of Statutory Financial Results, continued

Consolidation, continued

	2008			2007			2006
Gain from operations before net realized capital gains and losses	$	102		$	348		$	417
Net realized capital gains (losses)		(417	)		43			107
Net income (loss)		(315	)		391			524
Total other changes		(184	)		(74	)		14
Net change in unassigned surplus	$	(499	)	$	317		$	538

Thrivent Financial is in compliance with the statutory surplus requirements of all states.

F-28

Report of Independent Registered Public Accounting Firm

The Board of Directors

Thrivent Financial for Lutherans

We have audited the accompanying statements of assets and liabilities of the individual subaccounts of Thrivent Variable Annuity Account B (the Account) (comprising, respectively, the Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation, Technology, Partner Healthcare, Partner Natural Resources, Partner Emerging Markets, Real Estate Securities, Partner Utilities, Partner Small Cap Growth, Partner Small Cap Value, Small Cap Stock, Small Cap Index, Mid Cap Growth II, Mid Cap Growth, Partner Mid Cap Value, Mid Cap Stock, Mid Cap Index, Partner Worldwide Allocation, Partner International Stock, Partner Socially Responsible Stock, Partner All Cap Growth, Partner All Cap Value, Partner All Cap, Large Cap Growth II, Large Cap Growth, Partner Growth Stock, Large Cap Value, Large Cap Stock, Large Cap Index, Equity Income Plus, Balanced, High Yield, Diversified Income Plus, Partner Socially Responsible Bond, Income, Bond Index, Limited Maturity Bond, Mortgage Securities, and Money Market subaccounts), as of December 31, 2008, and the related statements of operations and changes in net assets for the periods indicated therein. These financial statements are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the affiliated transfer agent. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts constituting the Thrivent Variable Annuity Account B at December 31, 2008, and the results of their operations and changes in their net assets for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota

April 17, 2009

F-29

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Assets and Liabilities

As of December 31, 2008	Aggressive Allocation Subaccount		Moderately Aggressive Allocation Subaccount		Moderate Allocation Subaccount		Moderately Conservative Allocation Subaccount
Assets:
Series funds, at fair value	$	51,471,184	$	183,237,436	$	253,173,872	$	111,138,334
Receivable from Thrivent Financial for annuity reserve adjustment		—		—		—		—
Total Assets		51,471,184		183,237,436		253,173,872		111,138,334
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		—		—		—
Total Liabilities		—		—		—		—
Net Assets	$	51,471,184	$	183,237,436	$	253,173,872	$	111,138,334
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	50,904,529	$	181,295,398	$	249,505,156	$	109,217,475
Reserves for contracts in annuity payment period		566,655		1,942,038		3,668,716		1,920,859
Net Assets	$	51,471,184	$	183,237,436	$	253,173,872	$	111,138,334
Accumulation units outstanding		5,932,767		20,733,970		27,443,650		11,526,368
Unit value (accumulation)	$	8.58	$	8.74	$	9.09	$	9.47
Deathclaim units		—		4,412		15,265		6,913
Deathclaim unit value	$	8.03	$	8.29	$	8.73	$	9.20
Series funds, at cost	$	73,445,015	$	254,814,482	$	331,726,105	$	136,212,718
Series funds shares owned		6,050,450		21,210,738		28,376,040		11,994,467
As of December 31, 2008	Technology Subaccount		Partner Healthcare Subaccount		Partner Natural Resources Subaccount		Partner Emerging Markets Subaccount
Assets:
Series funds, at fair value	$	1,536,081	$	1,087,530	$	1,147,372	$	417,237
Receivable from Thrivent Financial for annuity reserve adjustment		—		—		—		—
Total Assets		1,536,081		1,087,530		1,147,372		417,237
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		1		—		—		—
Total Liabilities		1		—		—		—
Net Assets	$	1,536,080	$	1,087,530	$	1,147,372	$	417,237
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	1,491,647	$	1,080,173	$	1,137,051	$	417,237
Reserves for contracts in annuity payment period		44,433		7,357		10,321		—
Net Assets	$	1,536,080	$	1,087,530	$	1,147,372	$	417,237
Accumulation units outstanding		225,247		121,558		199,863		74,508
Unit value (accumulation)	$	6.62	$	8.89	$	5.69	$	5.60
Deathclaim units		—		—		—		—
Deathclaim unit value	$	6.07	$	8.90	$	5.69	$	5.61
Series funds, at cost	$	2,898,195	$	1,222,370	$	1,974,340	$	622,548
Series funds shares owned		422,673		121,582		200,435		74,648

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

F-30

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Assets and Liabilities, continued

As of December 31, 2008	Real Estate Securities Subaccount		Partner Utilities Subaccount		Partner Small Cap Growth Subaccount		Partner Small Cap Value Subaccount
Assets:
Series funds, at fair value	$	13,222,176	$	673,661	$	5,021,923	$	7,443,575
Receivable from Thrivent Financial for annuity reserve adjustment		—		—		453		—
Total Assets		13,222,176		673,661		5,022,376		7,443,575
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		9,588		—		—		8,885
Total Liabilities		9,588		—		—		8,885
Net Assets	$	13,212,588	$	673,661	$	5,022,376	$	7,434,690
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	12,853,548	$	666,962	$	4,939,696	$	7,219,815
Reserves for contracts in annuity payment period		359,040		6,699		82,680		214,875
Net Assets	$	13,212,588	$	673,661	$	5,022,376	$	7,434,690
Accumulation units outstanding		978,572		95,404		600,806		482,424
Unit value (accumulation)	$	13.10	$	6.99	$	8.22	$	14.96
Deathclaim units		4,352		—		—		492
Deathclaim unit value	$	7.21	$	7.00	$	7.06	$	8.81
Series funds, at cost	$	20,993,229	$	907,187	$	7,247,606	$	9,667,026
Series funds shares owned		1,414,999		97,207		674,427		616,818
As of December 31, 2008	Small Cap Stock Subaccount		Small Cap Index Subaccount		Mid Cap Growth II Subaccount		Mid Cap Growth Subaccount
Assets:
Series funds, at fair value	$	10,046,750	$	8,807,456	$	3,212,263	$	123,845,366
Receivable from Thrivent Financial for annuity reserve adjustment		285		—		1,780		102,637
Total Assets		10,047,035		8,807,456		3,214,043		123,948,003
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		5,290		—		—
Total Liabilities		—		5,290		—		—
Net Assets	$	10,047,035	$	8,802,166	$	3,214,043	$	123,948,003
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	9,891,504	$	8,625,862	$	3,147,412	$	121,219,684
Reserves for contracts in annuity payment period		155,531		176,304		66,631		2,728,319
Net Assets	$	10,047,035	$	8,802,166	$	3,214,043	$	123,948,003
Accumulation units outstanding		991,651		840,138		429,992		9,415,344
Unit value (accumulation)	$	9.96	$	10.26	$	7.32	$	12.87
Deathclaim units		1,605		494		—		7,901
Deathclaim unit value	$	7.65	$	7.91	$	7.66	$	7.88
Series funds, at cost	$	15,193,865	$	13,494,556	$	5,239,582	$	185,047,033
Series funds shares owned		1,184,046		835,678		568,703		12,964,436

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

F-31

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Assets and Liabilities, continued

As of December 31, 2008	Partner Mid Cap Value Subaccount		Mid Cap Stock Subaccount		Mid Cap Index Subaccount		Partner Worldwide Allocation Subaccount
Assets:
Series funds, at fair value	$	2,059,267	$	11,046,382	$	8,413,165	$	2,326,658
Receivable from Thrivent Financial for annuity reserve adjustment		—		—		245		—
Total Assets		2,059,267		11,046,382		8,413,410		2,326,658
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		4,411		—		—
Total Liabilities		—		4,411		—		—
Net Assets	$	2,059,267	$	11,041,971	$	8,413,410	$	2,326,658
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	2,036,572	$	10,808,991	$	8,219,945	$	2,315,254
Reserves for contracts in annuity payment period		22,695		232,980		193,465		11,404
Net Assets	$	2,059,267	$	11,041,971	$	8,413,410	$	2,326,658
Accumulation units outstanding		236,945		1,114,380		830,975		382,954
Unit value (accumulation)	$	8.60	$	9.69	$	9.89	$	6.05
Deathclaim units		—		1,232		493		—
Deathclaim unit value	$	7.91	$	7.32	$	7.76	$	6.05
Series funds, at cost	$	2,997,350	$	17,957,304	$	12,322,587	$	3,112,037
Series funds shares owned		249,705		1,560,025		1,012,111		385,898
As of December 31, 2008	Partner International Stock Subaccount		Partner Socially Responsible Stock Subaccount		Partner All Cap Growth Subaccount		Partner All Cap Value Subaccount
Assets:
Series funds, at fair value	$	106,267,430	$	97,528	$	291,848	$	430,966
Receivable from Thrivent Financial for annuity reserve adjustment		92,312		—		—		—
Total Assets		106,359,742		97,528		291,848		430,966
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		—		—		—
Total Liabilities		—		—		—		—
Net Assets	$	106,359,742	$	97,528	$	291,848	$	430,966
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	104,181,386	$	97,528	$	291,848	$	430,966
Reserves for contracts in annuity payment period		2,178,356		—		—		—
Net Assets	$	106,359,742	$	97,528	$	291,848	$	430,966
Accumulation units outstanding		9,042,052		15,112		55,029		77,830
Unit value (accumulation)	$	11.51	$	6.45	$	5.30	$	5.54
Deathclaim units		7,579		—		—		—
Deathclaim unit value	$	8.42	$	6.46	$	5.31	$	5.54
Series funds, at cost	$	159,101,752	$	137,831	$	458,942	$	628,364
Series funds shares owned		12,995,895		15,043		54,622		78,725

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

F-32

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Assets and Liabilities, continued

As of December 31, 2008	Partner All Cap Subaccount		Large Cap Growth II Subaccount		Large Cap Growth Subaccount		Partner Growth Stock Subaccount
Assets:
Series funds, at fair value	$	12,504,919	$	3,649,412	$	286,739,264	$	10,664,860
Receivable from Thrivent Financial for annuity reserve adjustment		2,428		1,298		471,170		2,403
Total Assets		12,507,347		3,650,710		287,210,434		10,667,263
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		—		—		—
Total Liabilities		—		—		—		—
Net Assets	$	12,507,347	$	3,650,710	$	287,210,434	$	10,667,263
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	12,288,455	$	3,523,998	$	279,372,391	$	10,509,859
Reserves for contracts in annuity payment period		218,892		126,712		7,838,043		157,404
Net Assets	$	12,507,347	$	3,650,710	$	287,210,434	$	10,667,263
Accumulation units outstanding		1,585,263		503,414		7,684,670		1,325,787
Unit value (accumulation)	$	7.75	$	7.00	$	36.32	$	7.91
Deathclaim units		253		—		40,165		2,221
Deathclaim unit value	$	8.26	$	7.34	$	7.34	$	7.32
Series funds, at cost	$	19,563,014	$	5,792,367	$	515,648,186	$	15,637,311
Series funds shares owned		2,050,525		623,490		26,157,330		1,532,506
As of December 31, 2008	Large Cap Value Subaccount		Large Cap Stock Subaccount		Large Cap Index Subaccount		Equity Income Plus Subaccount
Assets:
Series funds, at fair value	$	46,501,016	$	21,038,004	$	16,891,563	$	392,525
Receivable from Thrivent Financial for annuity reserve adjustment		9,069		1,815		—		—
Total Assets		46,510,085		21,039,819		16,891,563		392,525
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		—		1,253		—
Total Liabilities		—		—		1,253		—
Net Assets	$	46,510,085	$	21,039,819	$	16,890,310	$	392,525
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	45,488,147	$	20,660,713	$	16,614,440	$	392,525
Reserves for contracts in annuity payment period		1,021,938		379,106		275,870		—
Net Assets	$	46,510,085	$	21,039,819	$	16,890,310	$	392,525
Accumulation units outstanding		4,956,347		2,609,889		1,908,622		56,158
Unit value (accumulation)	$	9.17	$	7.91	$	8.70	$	6.99
Deathclaim units		4,046		3,252		488		—
Deathclaim unit value	$	8.33	$	7.58	$	7.73	$	7.00
Series funds, at cost	$	57,248,015	$	29,327,994	$	23,935,946	$	484,032
Series funds shares owned		5,740,725		3,444,844		1,230,958		56,963

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

F-33

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Assets and Liabilities, continued

As of December 31, 2008	Balanced Subaccount		High Yield Subaccount		Diversified Income Plus Subaccount		Partner Socially Responsible Bond Subaccount
Assets:
Series funds, at fair value	$	11,342,748	$	127,336,728	$	11,192,855	$	186,379
Receivable from Thrivent Financial for annuity reserve adjustment		—		357,572		—		—
Total Assets		11,342,748		127,694,300		11,192,855		186,379
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		3,942		—		2,830		—
Total Liabilities		3,942		—		2,830		—
Net Assets	$	11,338,806	$	127,694,300	$	11,190,025	$	186,379
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	11,063,423	$	123,204,499	$	10,865,260	$	186,379
Reserves for contracts in annuity payment period		275,383		4,489,801		324,765		—
Net Assets	$	11,338,806	$	127,694,300	$	11,190,025	$	186,379
Accumulation units outstanding		1,116,315		5,057,916		964,390		18,286
Unit value (accumulation)	$	9.91	$	24.33	$	11.26	$	10.19
Deathclaim units		114		16,753		1,062		—
Deathclaim unit value	$	8.70	$	8.83	$	8.56	$	10.20
Series funds, at cost	$	13,699,651	$	257,490,713	$	15,157,112	$	185,003
Series funds shares owned		964,954		36,558,448		2,232,054		18,609
As of December 31, 2008	Income Subaccount		Bond Index Subaccount		Limited Maturity Bond Subaccount		Mortgage Securities Subaccount
Assets:
Series funds, at fair value	$	151,635,884	$	14,750,813	$	35,608,532	$	3,732,454
Receivable from Thrivent Financial for annuity reserve adjustment		227,801		—		31,051		409
Total Assets		151,863,685		14,750,813		35,639,583		3,732,863
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		—		572		—		—
Total Liabilities		—		572		—		—
Net Assets	$	151,863,685	$	14,750,241	$	35,639,583	$	3,732,863
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	146,922,748	$	14,452,553	$	34,749,733	$	3,662,104
Reserves for contracts in annuity payment period		4,940,937		297,688		889,850		70,759
Net Assets	$	151,863,685	$	14,750,241	$	35,639,583	$	3,732,863
Accumulation units outstanding		5,215,125		1,200,230		3,235,745		344,902
Unit value (accumulation)	$	28.15	$	12.02	$	10.74	$	10.62
Deathclaim units		9,617		1,922		1,048		30
Deathclaim unit value	$	9.55	$	10.66	$	9.92	$	10.20
Series funds, at cost	$	180,808,663	$	15,761,602	$	40,468,584	$	4,162,102
Series funds shares owned		18,494,887		1,517,840		4,049,875		423,003

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

F-34

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Assets and Liabilities, continued

As of December 31, 2008	Money Market Subaccount
Assets:
Series funds, at fair value	$	88,177,388
Receivable from Thrivent Financial for annuity reserve adjustment		—
Total Assets		88,177,388
Liabilities:
Payable to Thrivent Financial for annuity reserve adjustment		11,658
Total Liabilities		11,658
Net Assets	$	88,165,730
Net Assets Applicable to Annuity Contract Holders:
Contracts in accumulation period	$	86,554,102
Reserves for contracts in annuity payment period		1,611,628
Net Assets	$	88,165,730
Accumulation units outstanding		42,869,495
Unit value (accumulation)	$	2.02
Deathclaim units		35,573
Deathclaim unit value	$	1.11
Series funds, at cost	$	88,177,388
Series funds shares owned		88,177,388

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

F-35

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Operations

For the year ended December 31, 20081	Aggressive Allocation Subaccount			Moderately Aggressive Allocation Subaccount			Moderate Allocation Subaccount			Moderately Conservative Allocation Subaccount
Dividends	$	1,029,433		$	4,811,458		$	7,921,174		$	3,622,648
Mortality & expense risk charges		(752,176	)		(2,625,367	)		(3,563,818	)		(1,471,068	)
Net investment income (loss)		277,257			2,186,091			4,357,356			2,151,580
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		(201,976	)		(1,339,545	)		(4,035,237	)		(2,134,346	)
Capital gain distributions		1,748,386			4,772,564			4,920,386			1,168,051
Change in unrealized appreciation (depreciation) of investments		(32,636,545	)		(100,562,169	)		(109,784,710	)		(32,928,459	)
Net gain (loss) on investments		(31,090,135	)		(97,129,150	)		(108,899,561	)		(33,894,754	)
Net increase (decrease) in net assets resulting from operations	$	(30,812,878	)	$	(94,943,059	)	$	(104,542,205	)	$	(31,743,174	)
For the year ended December 31, 20081	Technology Subaccount			Partner Healthcare Subaccount			Partner Natural Resources Subaccount			Partner Emerging Markets Subaccount
Dividends	$	—		$	876		$	1,424		$	3,860
Mortality & expense risk charges		(30,069	)		(5,649	)		(8,425	)		(2,403	)
Net investment income (loss)		(30,069	)		(4,773	)		(7,001	)		1,457
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		(178,765	)		(6,640	)		(51,930	)		(7,137	)
Capital gain distributions		421,805			—			—			—
Change in unrealized appreciation (depreciation) of investments		(1,925,056	)		(134,840	)		(826,967	)		(205,311	)
Net gain (loss) on investments		(1,682,016	)		(141,480	)		(878,897	)		(212,448	)
Net increase (decrease) in net assets resulting from operations	$	(1,712,085	)	$	(146,253	)	$	(885,898	)	$	(210,991	)

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-36

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Operations, continued

For the year ended December 31, 20081	Real Estate Securities Subaccount			Partner Utilities Subaccount			Partner Small Cap Growth Subaccount			Partner Small Cap Value Subaccount
Dividends	$	1,333,477		$	10,773		$	625		$	122,845
Mortality & expense risk charges		(248,871	)		(4,362	)		(84,657	)		(114,252	)
Net investment income (loss)		1,084,606			6,411			(84,032	)		8,593
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		111,533			(25,584	)		52,829			181,584
Capital gain distributions		1,964,242			—			475,088			857,441
Change in unrealized appreciation (depreciation) of investments		(11,993,824	)		(233,527	)		(4,656,204	)		(4,105,569	)
Net gain (loss) on investments		(9,918,049	)		(259,111	)		(4,128,287	)		(3,066,544	)
Net increase (decrease) in net assets resulting from operations	$	(8,833,443	)	$	(252,700	)	$	(4,212,319	)	$	(3,057,951	)
For the year ended December 31, 20081	Small Cap Stock Subaccount			Small Cap Index Subaccount			Mid Cap Growth II Subaccount			Mid Cap Growth Subaccount
Dividends	$	148,831		$	153,237		$	15,162		$	2,161,376
Mortality & expense risk charges		(165,821	)		(145,568	)		(59,381	)		(2,144,587	)
Net investment income (loss)		(16,990	)		7,669			(44,219	)		16,789
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		(105,880	)		(289,668	)		(66,832	)		2,367,261
Capital gain distributions		1,767,932			2,662,361			766,841			38,319,521
Change in unrealized appreciation (depreciation) of investments		(8,464,351	)		(7,061,589	)		(3,489,692	)		(138,043,968	)
Net gain (loss) on investments		(6,802,299	)		(4,688,896	)		(2,789,683	)		(97,357,186	)
Net increase (decrease) in net assets resulting from operations	$	(6,819,289	)	$	(4,681,227	)	$	(2,833,902	)	$	(97,340,397	)

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-37

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Operations, continued

For the year ended December 31, 20081	Partner Mid Cap Value Subaccount			Mid Cap Stock Subaccount			Mid Cap Index Subaccount			Partner Worldwide Allocation Subaccount
Dividends	$	41,725		$	193,500		$	182,999		$	23,509
Mortality & expense risk charges		(29,454	)		(192,686	)		(146,064	)		(12,279	)
Net investment income (loss)		12,271			814			36,935			11,230
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		(61,252	)		(546,110	)		62,647			(83,574	)
Capital gain distributions		96,661			1,408,178			1,820,497			—
Change in unrealized appreciation (depreciation) of investments		(1,124,706	)		(9,539,499	)		(7,474,489	)		(785,379	)
Net gain (loss) on investments		(1,089,297	)		(8,677,431	)		(5,591,345	)		(868,953	)
Net increase (decrease) in net assets resulting from operations	$	(1,077,026	)	$	(8,676,617	)	$	(5,554,410	)	$	(857,723	)
For the year ended December 31, 20081	Partner International Stock Subaccount			Partner Socially Responsible Stock Subaccount			Partner All Cap Growth Subaccount			Partner All Cap Value Subaccount
Dividends	$	8,253,232		$	277		$	—		$	8,055
Mortality & expense risk charges		(1,897,056	)		(468	)		(1,848	)		(2,392	)
Net investment income (loss)		6,356,176			(191	)		(1,848	)		5,663
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		1,713,340			(94	)		(7,332	)		(9,870	)
Capital gain distributions		25,731,270			—			—			—
Change in unrealized appreciation (depreciation) of investments		(119,957,850	)		(40,303	)		(167,093	)		(197,399	)
Net gain (loss) on investments		(92,513,240	)		(40,397	)		(174,425	)		(207,269	)
Net increase (decrease) in net assets resulting from operations	$	(86,157,064	)	$	(40,588	)	$	(176,273	)	$	(201,606	)

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-38

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Operations, continued

For the year ended December 31, 20081	Partner All Cap Subaccount			Large Cap Growth II Subaccount			Large Cap Growth Subaccount			Partner Growth Stock Subaccount
Dividends	$	153,172		$	37,605		$	5,055,040		$	147,508
Mortality & expense risk charges		(230,301	)		(66,246	)		(5,041,461	)		(206,367	)
Net investment income (loss)		(77,129	)		(28,641	)		13,579			(58,859	)
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		(403,775	)		(2,276	)		(27,307,089	)		96,990
Capital gain distributions		3,663,426			923,937			—			2,056,372
Change in unrealized appreciation (depreciation) of investments		(14,418,188	)		(3,960,964	)		(208,345,713	)		(11,639,566	)
Net gain (loss) on investments		(11,158,537	)		(3,039,303	)		(235,652,802	)		(9,486,204	)
Net increase (decrease) in net assets resulting from operations	$	(11,235,666	)	$	(3,067,944	)	$	(235,639,223	)	$	(9,545,063	)
For the year ended December 31, 20081	Large Cap Value Subaccount			Large Cap Stock Subaccount			Large Cap Index Subaccount			Equity Income Plus Subaccount
Dividends	$	2,453,733		$	967,374		$	607,135		$	8,401
Mortality & expense risk charges		(769,308	)		(368,696	)		(292,042	)		(1,893	)
Net investment income (loss)		1,684,425			598,678			315,093			6,508
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		2,249,770			204,228			217,141			(3,465	)
Capital gain distributions		2,651,135			2,652,852			2,956,631			—
Change in unrealized appreciation (depreciation) of investments		(34,773,956	)		(18,531,935	)		(15,290,652	)		(91,506	)
Net gain (loss) on investments		(29,873,051	)		(15,674,855	)		(12,116,880	)		(94,971	)
Net increase (decrease) in net assets resulting from operations	$	(28,188,626	)	$	(15,076,177	)	$	(11,801,787	)	$	(88,463	)

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-39

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Operations, continued

For the year ended December 31, 20081	Balanced Subaccount			High Yield Subaccount			Diversified Income Plus Subaccount			Partner Socially Responsible Bond Subaccount
Dividends	$	611,343		$	15,349,359		$	1,042,254		$	2,937
Mortality & expense risk charges		(181,042	)		(1,895,905	)		(177,765	)		(738	)
Net investment income (loss)		430,301			13,453,454			864,489			2,199
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		153,107			(27,972,226	)		(462,081	)		(24	)
Capital gain distributions		598,484			—			—			—
Change in unrealized appreciation (depreciation) of investments		(6,066,300	)		(24,252,394	)		(4,394,821	)		1,377
Net gain (loss) on investments		(5,314,709	)		(52,224,620	)		(4,856,902	)		1,353
Net increase (decrease) in net assets resulting from operations	$	(4,884,408	)	$	(38,771,166	)	$	(3,992,413	)	$	3,552
For the year ended December 31, 20081	Income Subaccount			Bond Index Subaccount			Limited Maturity Bond Subaccount			Mortgage Securities Subaccount
Dividends	$	10,768,245		$	848,059		$	2,030,006		$	207,275
Mortality & expense risk charges		(2,085,185	)		(192,031	)		(492,433	)		(50,469	)
Net investment income (loss)		8,683,060			656,028			1,537,573			156,806
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		(4,222,335	)		(348,850	)		(923,079	)		(95,511	)
Capital gain distributions		—			—			—			—
Change in unrealized appreciation (depreciation) of investments		(27,362,355	)		(739,382	)		(3,897,705	)		(331,338	)
Net gain (loss) on investments		(31,584,690	)		(1,088,232	)		(4,820,784	)		(426,849	)
Net increase (decrease) in net assets resulting from operations	$	(22,901,630	)	$	(432,204	)	$	(3,283,211	)	$	(270,043	)

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-40

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Operations, continued

For the year ended December 31, 20081	Money Market Subaccount
Dividends	$	2,716,297
Mortality & expense risk charges		(1,025,667	)
Net investment income (loss)		1,690,630
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gains (loss) on investments		—
Capital gain distributions		—
Change in unrealized appreciation (depreciation) of investments		—
Net gain (loss) on investments		—
Net increase (decrease) in net assets resulting from operations	$	1,690,630

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-41

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets

	Aggressive Allocation Subaccount						Moderately Aggressive Allocation Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	277,257		$	(383,401	)	$	2,186,091		$	(661,917	)
Net realized gains (loss) on investments		1,546,410			1,065,383			3,433,019			1,620,384
Change in net unrealized appreciation (depreciation) on investments		(32,636,545	)		4,759,439			(100,562,169	)		12,649,856
Net Change in Net Assets from Operations		(30,812,878	)		5,441,421			(94,943,059	)		13,608,323
Unit Transactions:
Proceeds from units issued		3,166,383			2,873,730			9,022,734			14,508,266
Death benefits		(183,874	)		81,992			(729,855	)		(79,809	)
Surrenders and terminations		(5,593,578	)		(6,609,895	)		(21,929,630	)		(21,364,676	)
Administrative charges		(9,698	)		(7,193	)		(15,342	)		(11,516	)
Annuity benefit payments		(320,734	)		(390,910	)		(185,864	)		(178,992	)
Adjustments to annuity reserves		—			—			—			—
Transfers between subaccounts		5,890,605			15,000,914			21,221,833			81,294,970
Net Change in Net Assets from Unit Transactions		2,949,104			10,948,638			7,383,876			74,168,243
Net Change in Net Assets		(27,863,774	)		16,390,059			(87,559,183	)		87,776,566
Net Assets Beginning of Period		79,334,958			62,944,899			270,796,619			183,020,053
Net Assets End of Period	$	51,471,184		$	79,334,958		$	183,237,436		$	270,796,619
	Moderate Allocation Subaccount						Moderately Conservative Allocation Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	4,357,356		$	273,733		$	2,151,580		$	498,972
Net realized gains (loss) on investments		885,149			2,052,842			(966,295	)		996,704
Change in net unrealized appreciation (depreciation) on investments		(109,784,710	)		12,409,437			(32,928,459	)		2,556,266
Net Change in Net Assets from Operations		(104,542,205	)		14,736,012			(31,743,174	)		4,051,942
Unit Transactions:
Proceeds from units issued		12,480,883			18,492,151			6,344,925			9,065,998
Death benefits		(1,748,589	)		61,315			(1,667,698	)		(34,231	)
Surrenders and terminations		(38,901,056	)		(31,214,297	)		(17,019,361	)		(16,042,441	)
Administrative charges		(11,764	)		(8,069	)		(3,552	)		(2,467	)
Annuity benefit payments		(403,261	)		(409,028	)		(219,595	)		(173,021	)
Adjustments to annuity reserves		—			—			—			—
Transfers between subaccounts		35,822,548			119,552,368			25,879,585			55,051,476
Net Change in Net Assets from Unit Transactions		7,238,761			106,474,440			13,314,304			47,865,314
Net Change in Net Assets		(97,303,444	)		121,210,452			(18,428,870	)		51,917,256
Net Assets Beginning of Period		350,477,316			229,266,864			129,567,204			77,649,948
Net Assets End of Period	$	253,173,872		$	350,477,316		$	111,138,334		$	129,567,204

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-42

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Technology Subaccount						Partner Healthcare Subaccount			Partner Natural Resources Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2008
Operations:
Net investment income (loss)	$	(30,069	)	$	(44,452	)	$	(4,773	)	$	(7,001	)
Net realized gains (loss) on investments		243,040			389,967			(6,640	)		(51,930	)
Change in net unrealized appreciation (depreciation) on investments		(1,925,056	)		387			(134,840	)		(826,967	)
Net Change in Net Assets from Operations		(1,712,085	)		345,902			(146,253	)		(885,898	)
Unit Transactions:
Proceeds from units issued		57,491			179,680			127,922			123,619
Death benefits		(1,464	)		547			—			—
Surrenders and terminations		(255,007	)		(644,758	)		(17,073	)		(29,751	)
Administrative charges		(183	)		(162	)		(4	)		(10	)
Annuity benefit payments		(5,367	)		(5,914	)		—			—
Adjustments to annuity reserves		16			16			—			—
Transfers between subaccounts		(507,846	)		(31,293	)		1,122,938			1,939,412
Net Change in Net Assets from Unit Transactions		(712,360	)		(501,884	)		1,233,783			2,033,270
Net Change in Net Assets		(2,424,445	)		(155,982	)		1,087,530			1,147,372
Net Assets Beginning of Period		3,960,525			4,116,507			—			—
Net Assets End of Period	$	1,536,080		$	3,960,525		$	1,087,530		$	1,147,372
	Partner Emerging Markets Subaccount			Real Estate Securities Subaccount						Partner Utilities Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2008			12/31/2007			12/31/2008
Operations:
Net investment income (loss)	$	1,457		$	1,084,606		$	132,444		$	6,411
Net realized gains (loss) on investments		(7,137	)		2,075,775			7,239,801			(25,584	)
Change in net unrealized appreciation (depreciation) on investments		(205,311	)		(11,993,824	)		(14,469,977	)		(233,527	)
Net Change in Net Assets from Operations		(210,991	)		(8,833,443	)		(7,097,732	)		(252,700	)
Unit Transactions:
Proceeds from units issued		33,869			508,285			1,202,429			82,366
Death benefits		—			(235,284	)		(233,777	)		—
Surrenders and terminations		(5,112	)		(2,813,197	)		(4,789,632	)		(7,663	)
Administrative charges		(5	)		(1,509	)		(1,840	)		(1	)
Annuity benefit payments		—			(46,954	)		(68,050	)		—
Adjustments to annuity reserves		—			(9,088	)		(3,409	)		—
Transfers between subaccounts		599,476			(4,196,245	)		(10,505,434	)		851,659
Net Change in Net Assets from Unit Transactions		628,228			(6,793,992	)		(14,399,713	)		926,361
Net Change in Net Assets		417,237			(15,627,435	)		(21,497,445	)		673,661
Net Assets Beginning of Period		—			28,840,023			50,337,468			—
Net Assets End of Period	$	417,237		$	13,212,588		$	28,840,023		$	673,661

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-43

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Partner Small Cap Growth Subaccount						Partner Small Cap Value Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	(84,032	)	$	(129,180	)	$	8,593		$	(120,255	)
Net realized gains (loss) on investments		527,917			1,437,080			1,039,025			1,736,743
Change in net unrealized appreciation (depreciation) on investments		(4,656,204	)		(457,983	)		(4,105,569	)		(1,831,722	)
Net Change in Net Assets from Operations		(4,212,319	)		849,917			(3,057,951	)		(215,234	)
Unit Transactions:
Proceeds from units issued		213,187			367,899			226,002			364,227
Death benefits		(7,313	)		(1,330	)		(91,256	)		8,053
Surrenders and terminations		(893,457	)		(1,626,715	)		(1,390,643	)		(2,046,590	)
Administrative charges		(769	)		(917	)		(582	)		(639	)
Annuity benefit payments		(15,953	)		(16,625	)		(20,339	)		(31,150	)
Adjustments to annuity reserves		604			(38	)		(8,904	)		771
Transfers between subaccounts		(827,528	)		(1,126,219	)		(1,076,141	)		(1,632,896	)
Net Change in Net Assets from Unit Transactions		(1,531,229	)		(2,403,945	)		(2,361,863	)		(3,338,224	)
Net Change in Net Assets		(5,743,548	)		(1,554,028	)		(5,419,814	)		(3,553,458	)
Net Assets Beginning of Period		10,765,924			12,319,952			12,854,504			16,407,962
Net Assets End of Period	$	5,022,376		$	10,765,924		$	7,434,690		$	12,854,504
	Small Cap Stock Subaccount						Small Cap Index Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	(16,990	)	$	(193,259	)	$	7,669		$	(98,093	)
Net realized gains (loss) on investments		1,662,052			2,255,216			2,372,693			3,507,071
Change in net unrealized appreciation (depreciation) on investments		(8,464,351	)		(849,461	)		(7,061,589	)		(3,530,279	)
Net Change in Net Assets from Operations		(6,819,289	)		1,212,496			(4,681,227	)		(121,301	)
Unit Transactions:
Proceeds from units issued		326,480			723,387			324,237			551,614
Death benefits		(198,265	)		96,411			(104,943	)		2,738
Surrenders and terminations		(1,552,581	)		(2,677,696	)		(1,962,610	)		(2,362,245	)
Administrative charges		(917	)		(917	)		(774	)		(904	)
Annuity benefit payments		(19,519	)		(20,617	)		(17,481	)		(22,080	)
Adjustments to annuity reserves		716			(7,408	)		(5,290	)		(82	)
Transfers between subaccounts		(2,832,105	)		(2,441,990	)		(2,121,782	)		(2,318,307	)
Net Change in Net Assets from Unit Transactions		(4,276,191	)		(4,328,830	)		(3,888,643	)		(4,149,266	)
Net Change in Net Assets		(11,095,480	)		(3,116,334	)		(8,569,870	)		(4,270,567	)
Net Assets Beginning of Period		21,142,515			24,258,849			17,372,036			21,642,603
Net Assets End of Period	$	10,047,035		$	21,142,515		$	8,802,166		$	17,372,036

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-44

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Mid Cap Growth II Subaccount						Mid Cap Growth Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	(44,219	)	$	(51,751	)	$	16,789		$	(1,883,118	)
Net realized gains (loss) on investments		700,009			1,874,615			40,686,782			30,117,344
Change in net unrealized appreciation (depreciation) on investments		(3,489,692	)		(430,524	)		(138,043,968	)		18,962,658
Net Change in Net Assets from Operations		(2,833,902	)		1,392,340			(97,340,397	)		47,196,884
Unit Transactions:
Proceeds from units issued		131,080			203,984			5,935,804			8,215,192
Death benefits		(43,852	)		(46	)		(1,117,152	)		83,983
Surrenders and terminations		(800,028	)		(972,386	)		(18,177,921	)		(32,953,422	)
Administrative charges		(661	)		(788	)		(43,268	)		(46,758	)
Annuity benefit payments		(9,274	)		(10,956	)		(420,722	)		(522,372	)
Adjustments to annuity reserves		(401	)		848			(94,508	)		49,923
Transfers between subaccounts		(942,194	)		(1,288,276	)		(24,512,722	)		(43,229,656	)
Net Change in Net Assets from Unit Transactions		(1,665,330	)		(2,067,620	)		(38,430,489	)		(68,403,110	)
Net Change in Net Assets		(4,499,232	)		(675,280	)		(135,770,886	)		(21,206,226	)
Net Assets Beginning of Period		7,713,275			8,388,555			259,718,889			280,925,115
Net Assets End of Period	$	3,214,043		$	7,713,275		$	123,948,003		$	259,718,889
	Partner Mid Cap Value Subaccount						Mid Cap Stock Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	12,271		$	(43,087	)	$	814		$	(75,120	)
Net realized gains (loss) on investments		35,409			126,600			862,068			2,756,513
Change in net unrealized appreciation (depreciation) on investments		(1,124,706	)		(79,695	)		(9,539,499	)		(1,371,622	)
Net Change in Net Assets from Operations		(1,077,026	)		3,818			(8,676,617	)		1,309,771
Unit Transactions:
Proceeds from units issued		72,140			200,757			434,982			944,165
Death benefits		(15,963	)		—			(212,679	)		102,436
Surrenders and terminations		(353,240	)		(460,454	)		(1,908,212	)		(3,137,710	)
Administrative charges		(120	)		(117	)		(945	)		(1,025	)
Annuity benefit payments		(2,064	)		(2,405	)		(30,786	)		(43,101	)
Adjustments to annuity reserves		—			—			4,321			(8,573	)
Transfers between subaccounts		(172,740	)		1,134,546			(3,282,813	)		(1,296,804	)
Net Change in Net Assets from Unit Transactions		(471,987	)		872,327			(4,996,132	)		(3,440,612	)
Net Change in Net Assets		(1,549,013	)		876,145			(13,672,749	)		(2,130,841	)
Net Assets Beginning of Period		3,608,280			2,732,135			24,714,720			26,845,561
Net Assets End of Period	$	2,059,267		$	3,608,280		$	11,041,971		$	24,714,720

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-45

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Mid Cap Index Subaccount						Partner Worldwide Allocation Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008
Operations:
Net investment income (loss)	$	36,935		$	(27,614	)	$	11,230
Net realized gains (loss) on investments		1,883,144			2,543,253			(83,574	)
Change in net unrealized appreciation (depreciation) on investments		(7,474,489	)		(1,201,193	)		(785,379	)
Net Change in Net Assets from Operations		(5,554,410	)		1,314,446			(857,723	)
Unit Transactions:
Proceeds from units issued		279,985			577,249			105,735
Death benefits		(76,837	)		2,861			—
Surrenders and terminations		(1,625,718	)		(2,503,565	)		(68,476	)
Administrative charges		(705	)		(684	)		(46	)
Annuity benefit payments		(23,158	)		(27,973	)		(606	)
Adjustments to annuity reserves		454			107			—
Transfers between subaccounts		(2,125,180	)		(1,761,706	)		3,147,774
Net Change in Net Assets from Unit Transactions		(3,571,159	)		(3,713,711	)		3,184,381
Net Change in Net Assets		(9,125,569	)		(2,399,265	)		2,326,658
Net Assets Beginning of Period		17,538,979			19,938,244			—
Net Assets End of Period	$	8,413,410		$	17,538,979		$	2,326,658
	Partner International Stock Subaccount						Partner Socially Responsible Stock Subaccount			Partner All Cap Growth Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2008
Operations:
Net investment income (loss)	$	6,356,176		$	622,371		$	(191	)	$	(1,848	)
Net realized gains (loss ) on investments		27,444,610			24,799,468			(94	)		(7,332	)
Change in net unrealized appreciation (depreciation) on investments		(119,957,850	)		(1,790,762	)		(40,303	)		(167,093	)
Net Change in Net Assets from Operations		(86,157,064	)		23,631,077			(40,588	)		(176,273	)
Unit Transactions:
Proceeds from units issued		4,602,726			7,322,088			18,948			19,161
Death benefits		(1,142,727	)		79,766			—			—
Surrenders and terminations		(17,342,869	)		(31,417,088	)		—			(50	)
Administrative charges		(24,199	)		(26,849	)		—			(1	)
Annuity benefit payments		(318,145	)		(442,095	)		—			—
Adjustments to annuity reserves		(60,227	)		27,078			—			—
Transfers between subaccounts		(27,623,043	)		(29,787,162	)		119,168			449,011
Net Change in Net Assets from Unit Transactions		(41,908,484	)		(54,244,262	)		138,116			468,121
Net Change in Net Assets		(128,065,548	)		(30,613,185	)		97,528			291,848
Net Assets Beginning of Period		234,425,290			265,038,475			—			—
Net Assets End of Period	$	106,359,742		$	234,425,290		$	97,528		$	291,848

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-46

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Partner All Cap Value Subaccount			Partner All Cap Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	5,663		$	(77,129	)	$	(182,128	)
Net realized gains (loss) on investments		(9,870	)		3,259,651			3,883,280
Change in net unrealized appreciation (depreciation) on investments		(197,399	)		(14,418,188	)		1,088,803
Net Change in Net Assets from Operations		(201,606	)		(11,235,666	)		4,789,955
Unit Transactions:
Proceeds from units issued		18,992			655,823			897,088
Death benefits		—			(168,003	)		3,852
Surrenders and terminations		(773	)		(2,632,498	)		(3,209,519	)
Administrative charges		(1	)		(2,031	)		(2,018	)
Annuity benefit payments		—			(30,682	)		(35,121	)
Adjustments to annuity reserves		—			848			1,732
Transfers between subaccounts		614,354			(2,980,435	)		(19,658	)
Net Change in Net Assets from Unit Transactions		632,572			(5,156,978	)		(2,363,644	)
Net Change in Net Assets		430,966			(16,392,644	)		2,426,311
Net Assets Beginning of Period		—			28,899,991			26,473,680
Net Assets End of Period	$	430,966		$	12,507,347		$	28,899,991
	Large Cap Growth II Subaccount						Large Cap Growth Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	(28,641	)	$	(43,865	)	$	13,579		$	(479,939	)
Net realized gains (loss) on investments		921,661			1,132,751			(27,307,089	)		(19,299,541	)
Change in net unrealized appreciation (depreciation) on investments		(3,960,964	)		234,555			(208,345,713	)		113,234,886
Net Change in Net Assets from Operations		(3,067,944	)		1,323,441			(235,639,223	)		93,455,406
Unit Transactions:
Proceeds from units issued		154,422			254,461			12,766,449			19,383,024
Death benefits		(45,212	)		(2,247	)		(4,680,092	)		83,969
Surrenders and terminations		(1,028,146	)		(1,272,320	)		(42,351,359	)		(83,024,333	)
Administrative charges		(613	)		(662	)		(83,954	)		(91,523	)
Annuity benefit payments		(27,872	)		(32,420	)		(1,342,096	)		(1,929,947	)
Adjustments to annuity reserves		180			833			(388,145	)		(32,816	)
Transfers between subaccounts		(871,922	)		(1,732,108	)		(56,685,012	)		(99,859,502	)
Net Change in Net Assets from Unit Transactions		(1,819,163	)		(2,784,463	)		(92,764,209	)		(165,471,128	)
Net Change in Net Assets		(4,887,107	)		(1,461,022	)		(328,403,432	)		(72,015,722	)
Net Assets Beginning of Period		8,537,817			9,998,839			615,613,866			687,629,588
Net Assets End of Period	$	3,650,710		$	8,537,817		$	287,210,434		$	615,613,866

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-47

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Partner Growth Stock Subaccount						Large Cap Value Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	(58,859	)	$	(162,326	)	$	1,684,425		$	113,630
Net realized gains (loss) on investments		2,153,362			2,993,975			4,900,905			10,971,181
Change in net unrealized appreciation (depreciation) on investments		(11,639,566	)		(636,254	)		(34,773,956	)		(6,942,538	)
Net Change in Net Assets from Operations		(9,545,063	)		2,195,395			(28,188,626	)		4,142,273
Unit Transactions:
Proceeds from units issued		527,627			678,911			1,617,693			2,833,421
Death benefits		(105,872	)		5,685			(459,564	)		128,017
Surrenders and terminations		(2,281,913	)		(3,252,192	)		(8,467,301	)		(12,146,336	)
Administrative charges		(1,232	)		(1,387	)		(4,400	)		(4,781	)
Annuity benefit payments		(27,496	)		(35,916	)		(133,262	)		(190,459	)
Adjustments to annuity reserves		54			1,327			1,463			21,321
Transfers between subaccounts		(4,006,397	)		(1,714,872	)		(11,070,835	)		(11,381,286	)
Net Change in Net Assets from Unit Transactions		(5,895,229	)		(4,318,444	)		(18,516,206	)		(20,740,103	)
Net Change in Net Assets		(15,440,292	)		(2,123,049	)		(46,704,832	)		(16,597,830	)
Net Assets Beginning of Period		26,107,555			28,230,604			93,214,917			109,812,747
Net Assets End of Period	$	10,667,263		$	26,107,555		$	46,510,085		$	93,214,917
	Large Cap Stock Subaccount						Large Cap Index Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	598,678		$	16,532		$	315,093		$	228,290
Net realized gains (loss) on investments		2,857,080			3,605,094			3,173,772			3,960,565
Change in net unrealized appreciation (depreciation) on investments		(18,531,935	)		(408,175	)		(15,290,652	)		(2,459,893	)
Net Change in Net Assets from Operations		(15,076,177	)		3,213,451			(11,801,787	)		1,728,962
Unit Transactions:
Proceeds from units issued		653,693			1,196,251			707,809			1,013,918
Death benefits		(223,359	)		11,757			(197,807	)		20,677
Surrenders and terminations		(3,571,953	)		(5,133,641	)		(3,192,313	)		(5,135,252	)
Administrative charges		(1,533	)		(1,718	)		(1,429	)		(1,461	)
Annuity benefit payments		(50,846	)		(66,516	)		(29,599	)		(44,366	)
Adjustments to annuity reserves		416			1,114			1,240			(33	)
Transfers between subaccounts		(6,000,708	)		(6,878,192	)		(5,127,949	)		(2,999,713	)
Net Change in Net Assets from Unit Transactions		(9,194,290	)		(10,870,945	)		(7,840,048	)		(7,146,230	)
Net Change in Net Assets		(24,270,467	)		(7,657,494	)		(19,641,835	)		(5,417,268	)
Net Assets Beginning of Period		45,310,286			52,967,780			36,532,145			41,949,413
Net Assets End of Period	$	21,039,819		$	45,310,286		$	16,890,310		$	36,532,145

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-48

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Equity Income Plus Subaccount			Balanced Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	6,508		$	430,301		$	436,446
Net realized gains (loss) on investments		(3,465	)		751,591			1,156,794
Change in net unrealized appreciation (depreciation) on investments		(91,506	)		(6,066,300	)		(592,047	)
Net Change in Net Assets from Operations		(88,463	)		(4,884,408	)		1,001,193
Unit Transactions:
Proceeds from units issued		18,217			399,476			525,302
Death benefits		—			(144,797	)		5,708
Surrenders and terminations		(6,565	)		(2,183,948	)		(3,071,071	)
Administrative charges		(1	)		(910	)		(854	)
Annuity benefit payments		—			(25,562	)		(35,787	)
Adjustments to annuity reserves		—			2,075			222
Transfers between subaccounts		469,337			(3,027,006	)		(2,209,783	)
Net Change in Net Assets from Unit Transactions		480,988			(4,980,672	)		(4,786,263	)
Net Change in Net Assets		392,525			(9,865,080	)		(3,785,070	)
Net Assets Beginning of Period		—			21,203,886			24,988,956
Net Assets End of Period	$	392,525		$	11,338,806		$	21,203,886
	High Yield Subaccount						Diversified Income Plus Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	13,453,454		$	16,296,963		$	864,489		$	195,716
Net realized gains (loss) on investments		(27,972,226	)		(30,859,429	)		(462,081	)		164,269
Change in net unrealized appreciation (depreciation) on investments		(24,252,394	)		19,019,517			(4,394,821	)		(898,075	)
Net Change in Net Assets from Operations		(38,771,166	)		4,457,051			(3,992,413	)		(538,090	)
Unit Transactions:
Proceeds from units issued		4,788,955			7,002,034			459,876			1,767,850
Death benefits		(3,113,846	)		(137,298	)		(103,320	)		(579	)
Surrenders and terminations		(17,252,298	)		(30,790,776	)		(2,657,184	)		(2,546,535	)
Administrative charges		(23,740	)		(24,478	)		(362	)		(301	)
Annuity benefit payments		(616,443	)		(907,159	)		(31,127	)		(38,387	)
Adjustments to annuity reserves		(119,121	)		(93,923	)		(1,367	)		11,098
Transfers between subaccounts		(24,081,548	)		(37,248,168	)		(2,626,837	)		6,288,732
Net Change in Net Assets from Unit Transactions		(40,418,041	)		(62,199,768	)		(4,960,321	)		5,481,878
Net Change in Net Assets		(79,189,207	)		(57,742,717	)		(8,952,734	)		4,943,788
Net Assets Beginning of Period		206,883,507			264,626,224			20,142,759			15,198,971
Net Assets End of Period	$	127,694,300		$	206,883,507		$	11,190,025		$	20,142,759

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-49

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Partner Socially Responsible Bond Subaccount			Income Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	2,199		$	8,683,060		$	10,091,560
Net realized gains (loss) on investments		(24	)		(4,222,335	)		(20,036	)
Change in net unrealized appreciation (depreciation) on investments		1,377			(27,362,355	)		(3,777,800	)
Net Change in Net Assets from Operations		3,552			(22,901,630	)		6,293,724
Unit Transactions:
Proceeds from units issued		30,491			4,447,111			6,274,096
Death benefits		—			(3,589,431	)		(76,240	)
Surrenders and terminations		(2,619	)		(21,994,965	)		(33,165,613	)
Administrative charges		—			(20,247	)		(20,535	)
Annuity benefit payments		—			(694,556	)		(958,066	)
Adjustments to annuity reserves		—			(78,654	)		(27,452	)
Transfers between subaccounts		154,955			(22,785,598	)		(28,177,591	)
Net Change in Net Assets from Unit Transactions		182,827			(44,716,340	)		(56,151,401	)
Net Change in Net Assets		186,379			(67,617,970	)		(49,857,677	)
Net Assets Beginning of Period		—			219,481,655			269,339,332
Net Assets End of Period	$	186,379		$	151,863,685		$	219,481,655
	Bond Index Subaccount						Limited Maturity Bond Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	656,028		$	688,941		$	1,537,573		$	1,995,949
Net realized gains (loss) on investments		(348,850	)		(134,313	)		(923,079	)		(182,899	)
Change in net unrealized appreciation (depreciation) on investments		(739,382	)		248,945			(3,897,705	)		(251,606	)
Net Change in Net Assets from Operations		(432,204	)		803,573			(3,283,211	)		1,561,444
Unit Transactions:
Proceeds from units issued		699,159			516,041			1,080,185			1,669,258
Death benefits		(150,383	)		16,654			(396,205	)		(6,134	)
Surrenders and terminations		(2,131,593	)		(2,239,677	)		(6,476,421	)		(7,214,777	)
Administrative charges		(821	)		(786	)		(2,698	)		(2,790	)
Annuity benefit payments		(22,983	)		(25,920	)		(99,110	)		(98,786	)
Adjustments to annuity reserves		121			137			(4,334	)		5,222
Transfers between subaccounts		(879,064	)		(1,227,053	)		(5,623,291	)		(5,555,840	)
Net Change in Net Assets from Unit Transactions		(2,485,564	)		(2,960,604	)		(11,521,874	)		(11,203,847	)
Net Change in Net Assets		(2,917,768	)		(2,157,031	)		(14,805,085	)		(9,642,403	)
Net Assets Beginning of Period		17,668,009			19,825,040			50,444,668			60,087,071
Net Assets End of Period	$	14,750,241		$	17,668,009		$	35,639,583		$	50,444,668

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-50

THRIVENT VARIABLE ANNUITY ACCOUNT B

Statements of Changes in Net Assets, continued

	Mortgage Securities Subaccount						Money Market Subaccount
For the years ended, except as indicated1	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Operations:
Net investment income (loss)	$	156,806		$	241,835		$	1,690,630		$	3,058,104
Net realized gains (loss) on investments		(95,511	)		(51,169	)		—			—
Change in net unrealized appreciation (depreciation) on investments		(331,338	)		43,989			—			—
Net Change in Net Assets from Operations		(270,043	)		234,655			1,690,630			3,058,104
Unit Transactions:
Proceeds from units issued		100,312			139,516			10,429,019			11,671,092
Death benefits		(45,560	)		(2,172	)		(1,000,002	)		(14,856	)
Surrenders and terminations		(625,652	)		(901,177	)		(27,692,590	)		(26,251,407	)
Administrative charges		(164	)		(142	)		(6,526	)		(6,171	)
Annuity benefit payments		(6,521	)		(6,832	)		(162,301	)		(166,939	)
Adjustments to annuity reserves		148			178			(27,764	)		8,373
Transfers between subaccounts		(973,557	)		(1,010,452	)		20,592,538			24,530,104
Net Change in Net Assets from Unit Transactions		(1,550,994	)		(1,781,081	)		2,132,374			9,770,196
Net Change in Net Assets		(1,821,037	)		(1,546,426	)		3,823,004			12,828,300
Net Assets Beginning of Period		5,553,900			7,100,326			84,342,726			71,514,426
Net Assets End of Period	$	3,732,863		$	5,553,900		$	88,165,730		$	84,342,726

¹ Certain subaccounts commenced operations during 2008 as disclosed in the accompanying notes.

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

F-51

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements

December 31, 2008

(1) Organization

The Thrivent Variable Annuity Account B (the Variable Account), is registered as a unit investment trust under the Investment Companies Act of 1940, and is a separate account of Thrivent Financial for Lutherans (Thrivent Financial). The Variable Account contains 41 subaccounts each of which invests in a corresponding portfolio of the Thrivent Series Fund, Inc. (each a Fund and collectively the Funds), as follows:

Subaccount	Series
Aggressive Allocation (c)	Thrivent Series Fund, Inc. — Aggressive Allocation Portfolio
Moderately Aggressive Allocation (c)	Thrivent Series Fund, Inc. — Moderately Aggressive Allocation Portfolio
Moderate Allocation (c)	Thrivent Series Fund, Inc. — Moderate Allocation Portfolio
Moderately Conservative Allocation (c)	Thrivent Series Fund, Inc. — Moderately Conservative Allocation Portfolio
Technology (g)	Thrivent Series Fund, Inc. — Technology Portfolio
Partner Healthcare (a)	Thrivent Series Fund, Inc. — Partner Healthcare Portfolio
Partner Natural Resources (a)	Thrivent Series Fund, Inc. — Partner Natural Resources Portfolio
Partner Emerging Markets (a)	Thrivent Series Fund, Inc. — Partner Emeging Markets Portfolio
Real Estate Securities (f)	Thrivent Series Fund, Inc. — Real Estate Securities Portfolio
Partner Utilities (a)	Thrivent Series Fund, Inc. — Partner Utilities Portfolio
Partner Small Cap Growth	Thrivent Series Fund, Inc. — Partner Small Cap Growth Portfolio
Partner Small Cap Value (f)	Thrivent Series Fund, Inc. — Partner Small Cap Value Portfolio
Small Cap Stock (g)	Thrivent Series Fund, Inc. — Small Cap Stock Portfolio
Small Cap Index (g)	Thrivent Series Fund, Inc. — Small Cap Index Portfolio
Mid Cap Growth II	Thrivent Series Fund, Inc. — Mid Cap Growth II Portfolio
Mid Cap Growth (e)	Thrivent Series Fund, Inc. — Mid Cap Growth Portfolio (d)
Partner Mid Cap Value (c)	Thrivent Series Fund, Inc. — Partner Mid Cap Value Portfolio
Mid Cap Stock (g)	Thrivent Series Fund, Inc. — Mid Cap Stock Portfolio
Mid Cap Index (g)	Thrivent Series Fund, Inc. — Mid Cap Index Portfolio
Partner Worldwide Allocation (a)	Thrivent Series Fund, Inc. — Partner Worldwide Allocation Portfolio
Partner International Stock	Thrivent Series Fund, Inc. — Partner International Stock Portfolio (d)
Partner Socially Responsible Stock (a)	Thrivent Series Fund, Inc. — Partner Socially Responsible Stock
Partner All Cap Growth (a)	Thrivent Series Fund, Inc. — Partner All Cap Growth
Partner All Cap Value (a)	Thrivent Series Fund, Inc. — Partner All Cap Value
Partner All Cap	Thrivent Series Fund, Inc. — Partner All Cap Portfolio
Large Cap Growth II	Thrivent Series Fund, Inc. — Large Cap Growth II Portfolio
Large Cap Growth	Thrivent Series Fund, Inc. — Large Cap Growth Portfolio
Partner Growth Stock	Thrivent Series Fund, Inc. — Partner Growth Stock Portfolio
Large Cap Value	Thrivent Series Fund, Inc. — Large Cap Value Portfolio
Large Cap Stock (g)	Thrivent Series Fund, Inc. — Large Cap Stock Portfolio
Large Cap Index (g)	Thrivent Series Fund, Inc. — Large Cap Index Portfolio
Equity Income Plus (a)	Thrivent Series Fund, Inc. — Equity Income Plus Portfolio
Balanced (f)	Thrivent Series Fund, Inc. — Balanced Portfolio
High Yield	Thrivent Series Fund, Inc. — High Yield Portfolio
Diversified Income Plus (b, g)	Thrivent Series Fund, Inc. — Diversified Income Plus Portfolio
Partner Socially Responsible Bond (a)	Thrivent Series Fund, Inc. — Partner Socially Responsible Bond
Income	Thrivent Series Fund, Inc. — Income Portfolio

F-52

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(1) Organization, continued

Subaccount	Series
Bond Index (g)	Thrivent Series Fund, Inc. — Bond Index Portfolio
Limited Maturity Bond	Thrivent Series Fund, Inc. — Limited Maturity Bond Portfolio
Mortgage Securities (f)	Thrivent Series Fund, Inc. — Mortgage Securities Portfolio
Money Market	Thrivent Series Fund, Inc. — Money Market Portfolio

(a) Since inception, April 30, 2008

(b) Formerly known as High Yield II, name change effective June 30, 2006

(c) Since inception, April 29, 2005

(d) Aid Association for Lutherans (AAL) Series Fund, Inc. — International Portfolio merged into the Thrivent Series Fund, Inc. — Partner International Stock Portfolio as of April 30, 2004.

(e) Lutheran Brotherhood (LB) Series Fund, Inc. — Opportunity Growth Portfolio merged into the Thrivent Series Fund, Inc. — Mid Cap Growth Portfolio as of April 30, 2004.

(f) Since inception, April 30, 2003

(g) Since inception, April 30, 2002

The Funds are registered under the Investment Company Act of 1940 as diversified open-end investment companies.

The Variable Account is used to fund only flexible premium deferred variable annuity contracts issued by Thrivent Financial. Under applicable insurance law, the assets and liabilities of the Variable Account are clearly identified and distinguished from the other assets and liabilities of Thrivent Financial. The assets of the Variable Account will not be charged with any liabilities arising out of any other business conducted by the life insurance operations of Thrivent Financial.

A fixed account investment option is available for contract owners of the flexible premium deferred variable annuity. Assets of the fixed account are combined with the general assets of Thrivent Financial and invested by Thrivent Financial as allowed by applicable law. Accordingly, the fixed account assets are not included in the Variable Account financial statements.

(2) Significant Accounting Policies

Valuation of Investments

The investments in shares of the Funds are stated at fair value which is the closing net asset value per share as determined by the Fund. The cost of shares sold and redeemed is determined on the average cost method. Dividend distributions received from the Fund are reinvested in additional shares of the Fund and recorded as income by the Variable Account on the ex-dividend date.

Federal Income Taxes

Thrivent Financial qualifies as a tax-exempt organization under the Internal Revenue Code. Accordingly, no provision for income taxes has been charged against the Variable Account. Thrivent Financial reserves the right to charge for taxes in the future should Thrivent Financial’s tax status change.

F-53

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(2) Significant Accounting Policies, continued

Annuity Reserves

Annuity reserves, represented as reserves for contracts in annuity payout period in the statement of assets and liabilities, are computed for currently payable contracts according to the 1983 Table A mortality table and the 2000 IAM mortality table. The assumed interest is 3.5%. Changes to annuity reserves are based on actual mortality and risk experience. If the reserves required are less than the original estimated reserve amount held in the Variable Account, the excess is reimbursed to Thrivent Financial. If additional reserves are required, Thrivent Financial reimburses the Variable Account.

Death Claims

Amounts payable under the contract for death benefits remain invested in the separate accounts until the beneficiaries provide instructions to disburse the benefits. Prior to October 2005, amounts payable for death benefits were transferred to the general account upon election of the first beneficiary, pending instructions from the other beneficiaries for disbursement.

Estimates

The preparation of financial statements in conformity with U.S generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standard No. 157, Fair Value Measurements, (SFAS No. 157). This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Under this standard fair value is based on an exit price model, whereby value is determined based on a price that would be paid or received to settle a financial instrument. Thrivent Financial adopted the provisions of this standard as of January 1, 2008 and the adoption did not have a significant impact on their financial statements.

In estimating the fair values for financial instruments carried at fair value, the amount of observable and unobservable inputs used to determine fair value are taken into consideration. Each of the financial instruments have been classified into one of three categories based on that evaluation:

Level 1:	Fair value based on quoted prices for identical assets in active markets that are accessible.
Level 2:	Fair value based on quoted prices for similar instruments in active markets that are accessible; quoted prices for identical or similar instruments in markets that are not active; or model-derived valuations where the significant value driver inputs are observable.
Level 3:	Fair value based on significant value driver inputs that are not observable.

The fair values for separate account assets are based on quoted market prices in active markets. These investments have been categorized as Level 1 assets.

F-54

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(3) Expense Charges

Proceeds received by the Variable Account for units issued represent gross contract premiums received by Thrivent Financial. No charge for sales distribution expense is deducted from premiums received.

A surrender charge is deducted by Thrivent Financial if a contract is surrendered in whole or in part during the first six years the contract is in force. The surrender charge is 6% during the first contract year, and decreases by 1% each subsequent contract year. For purposes of the surrender charge calculation, up to 10% of a contract’s accumulated value may be excluded from the calculation each year. This charge is deducted by redeeming units of the subaccounts of the Variable Account.

An annual administrative charge of $30 is deducted on each contract anniversary from the accumulated value of the contract to compensate Thrivent Financial for administrative expenses relating to the contract and the Variable Account. This charge is deducted by redeeming units of the subaccounts of the Variable Account. No such charge is deducted from contracts for which total premiums paid, less surrenders, equals or exceeds $5,000. No administrative charge is payable during the annuity payment period.

A daily charge is deducted from the value of the net assets of the Variable Account to compensate Thrivent for mortality and expense risks assumed in connection with the contract. The charge is based on the average daily net assets of the Variable Account and is equal to annual rate of 1.1% during accumulation period of the contract and 0.95% while the contract is pending payout due to a death claim.

Additionally, during the year ended December 31, 2008, management fees were paid indirectly to Thrivent Financial in its capacity as adviser to the Fund. The Fund’s advisory agreement provides for fees as a percent of the average net assets for each subaccount, as shown below. These fees are paid at the Fund level.

Subaccount	% of Average Net Assets
Aggressive Allocation	0.15	%
Moderately Aggressive Allocation	0.15	%
Moderate Allocation	0.15	%
Moderately Conservative Allocation	0.15	%
Technology	0.75	%
Partner Healthcare	0.95	%
Partner Natural Resources	0.75	%
Partner Emerging Markets	1.20	%
Real Estate Securities	0.80	%
Partner Utilities	0.75	%
Partner Small Cap Growth	1.00	%
Partner Small Cap Value	0.80	%
Small Cap Stock	0.70	%
Small Cap Index	0.35	%
Mid Cap Growth II	0.90	%
Mid Cap Growth	0.40	%
Partner Mid Cap Value	0.75	%
Mid Cap Stock	0.70	%
Mid Cap Index	0.35	%
Partner Worldwide Allocation	0.90	%
Partner International Stock	0.85	%
Partner Socially Responsible Stock	0.80	%

F-55

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(3) Expense Charges, continued

Subaccount	% of Average Net Assets
Partner All Cap Growth	0.95	%
Partner All Cap Value	0.75	%
Partner All Cap	0.95	%
Large Cap Growth II	0.80	%
Large Cap Growth	0.40	%
Partner Growth Stock	0.80	%
Large Cap Value	0.60	%
Large Cap Stock	0.65	%
Large Cap Index	0.35	%
Equity Income Plus	0.65	%
Balanced	0.35	%
High Yield	0.40	%
Diversified Income Plus	0.40	%
Partner Socially Responsible Bond	0.70	%
Income	0.40	%
Bond Index	0.35	%
Limited Maturity Bond	0.40	%
Mortgage Securities	0.50	%
Money Market	0.40	%

(4) Unit Activity

Transactions in units (including transfers among subaccounts) were as follows:

	Aggressive Allocation		Moderately Aggressive Allocation		Moderate Allocation		Moderately Conservative Allocation		Technology		Partner Healthcare
Units Outstanding at December 31, 2006	4,801,392		14,524,702		18,717,568		6,624,643		342,487		—
Units Issued	2,186,229		9,310,995		12,967,782		6,499,782		209,686		—
Units Redeemed	(1,341,340	)	(3,665,208	)	(4,535,488	)	(2,529,238	)	(253,785	)	—
Units Outstanding at December 31, 2007	5,646,281		20,170,489		27,149,862		10,595,187		298,388		—
Units Issued	1,898,721		5,544,941		8,660,337		5,425,473		141,196		142,348
Units Redeemed	(1,612,235	)	(4,977,048	)	(8,351,284	)	(4,487,379	)	(214,337	)	(20,790	)
Units Outstanding at December 31, 2008	5,932,767		20,738,382		27,458,915		11,533,281		225,247		121,558

F-56

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(4) Unit Activity, continued

	Partner Natural Resources		Partner Emerging Markets		Real Estate Securities		Partner Utilities		Partner Small Cap Growth		Partner Small Cap Value
Units Outstanding at December 31, 2006	—		—		1,937,957		—		892,489		754,379
Units Issued	—		—		565,332		—		215,443		281,397
Units Redeemed	—		—		(1,166,375	)	—		(389,665	)	(429,505	)
Units Outstanding at December 31, 2007	—		—		1,336,914		—		718,267		606,271
Units Issued	261,223		88,255		390,446		124,845		231,704		226,771
Units Redeemed	(61,360	)	(13,747	)	(744,436	)	(29,441	)	(349,165	)	(350,126	)
Units Outstanding at December 31, 2008	199,863		74,508		982,924		95,404		600,806		482,916
	Small Cap Stock		Small Cap Index		Mid Cap Growth II		Mid Cap Growth		Partner Mid Cap Value		Mid Cap Stock
Units Outstanding at December 31, 2006	1,568,333		1,396,059		759,795		14,798,437		205,630		1,672,246
Units Issued	498,925		481,268		96,567		1,245,957		239,182		657,635
Units Redeemed	(768,760	)	(742,121	)	(268,960	)	(4,527,856	)	(178,004	)	(856,998	)
Units Outstanding at December 31, 2007	1,298,498		1,135,206		587,402		11,516,538		266,808		1,472,883
Units Issued	363,021		304,112		67,720		1,007,032		151,116		471,821
Units Redeemed	(668,263	)	(598,686	)	(225,130	)	(3,100,325	)	(180,979	)	(829,092	)
Units Outstanding at December 31, 2008	993,256		840,632		429,992		9,423,245		236,945		1,115,612
	Mid Cap Index		Partner Worldwide Allocation		Partner International Stock		Partner Socially Responsible Stock		Partner All Cap Growth		Partner All Cap Value
Units Outstanding at December 31, 2006	1,332,331		—		14,440,869		—		—		—
Units Issued	483,411		—		2,715,344		—		—		—
Units Redeemed	(718,591	)	—		(5,504,945	)	—		—		—
Units Outstanding at December 31, 2007	1,097,151		—		11,651,268		—		—		—
Units Issued	294,171		463,836		1,635,475		15,112		71,553		95,592
Units Redeemed	(559,854	)	(80,882	)	(4,237,112	)	—		(16,524	)	(17,762	)
Units Outstanding at December 31, 2008	831,468		382,954		9,049,631		15,112		55,029		77,830

F-57

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(4) Unit Activity, continued

Transactions in units (including transfers among subaccounts) were as follows:

	Partner All Cap		Large Cap Growth II		Large Cap Growth		Partner Growth Stock		Large Cap Value		Large Cap Stock
Units Outstanding at December 31, 2006	2,267,430		923,150		12,269,979		2,179,984		7,939,653		4,342,748
Units Issued	702,855		114,516		1,647,092		664,076		2,054,387		1,313,435
Units Redeemed	(897,002	)	(357,997	)	(4,412,227	)	(982,597	)	(3,507,507	)	(2,177,626	)
Units Outstanding at December 31, 2007	2,073,283		679,669		9,504,844		1,861,463		6,486,533		3,478,557
Units Issued	603,206		106,378		1,188,523		489,737		1,442,220		838,856
Units Redeemed	(1,090,973	)	(282,633	)	(2,968,532	)	(1,023,192	)	(2,968,360	)	(1,704,272	)
Units Outstanding at December 31, 2008	1,585,516		503,414		7,724,835		1,328,008		4,960,393		2,613,141
	Large Cap Index		Equity Income Plus		Balanced		High Yield		Diversified Income Plus		Partner Socially Responsible Bond
Units Outstanding at December 31, 2006	3,082,508		—		1,892,724		8,385,960		988,564		—
Units Issued	1,191,699		—		518,672		984,510		1,050,767		—
Units Redeemed	(1,698,356	)	—		(876,366	)	(2,930,316	)	(709,577	)	—
Units Outstanding at December 31, 2007	2,575,851		—		1,535,030		6,440,154		1,329,754		—
Units Issued	770,622		68,355		298,009		746,288		286,303		20,117
Units Redeemed	(1,437,363	)	(12,197	)	(716,610	)	(2,111,773	)	(650,605	)	(1,831	)
Units Outstanding at December 31, 2008	1,909,110		56,158		1,116,429		5,074,669		965,452		18,286
	Income		Bond Index		Limited Maturity Bond		Mortgage Securities		Money Market
Units Outstanding at December 31, 2006	8,431,936		1,667,746		5,242,038		645,147		36,684,324
Units Issued	1,436,780		761,492		1,664,669		222,036		42,429,983
Units Redeemed	(3,184,706	)	(1,006,475	)	(2,643,662	)	(382,702	)	(37,472,830	)
Units Outstanding at December 31, 2007	6,684,010		1,422,763		4,263,045		484,481		41,641,477
Units Issued	1,038,635		737,002		1,151,465		140,987		45,916,736
Units Redeemed	(2,497,903	)	(957,613	)	(2,177,717	)	(280,536	)	(44,653,145	)
Units Outstanding at December 31, 2008	5,224,742		1,202,152		3,236,793		344,932		42,905,068

F-58

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(5) Purchases and Sales of Investments

The aggregate costs of purchases and proceeds from sales of investments in the Funds for the year ended December 31, 2008 were as follows:

Subaccount	Purchases		Sales
Aggressive Allocation	$	12,899,544	$	7,924,796
Moderately Aggressive Allocation		32,560,963		18,218,432
Moderate Allocation		47,468,800		30,952,298
Moderately Conservative Allocation		35,769,124		19,135,190
Technology		630,463		951,102
Partner Healthcare		1,317,172		88,163
Partner Natural Resources		2,215,123		188,854
Partner Emerging Markets		663,438		33,753
Real Estate Securities		3,784,366		7,520,422
Partner Utilities		1,026,875		94,103
Partner Small Cap Growth		1,156,226		2,297,003
Partner Small Cap Value		1,833,027		3,319,951
Small Cap Stock		2,486,003		5,011,967
Small Cap Index		3,384,439		4,597,762
Mid Cap Growth II		962,679		1,904,986
Mid Cap Growth		41,162,450		41,162,120
Partner Mid Cap Value		782,083		1,145,137
Mid Cap Stock		2,131,547		5,723,007
Mid Cap Index		2,668,214		4,382,395
Partner Worldwide Allocation		3,443,753		248,142
Partner International Stock		34,482,221		44,243,033
Partner Socially Responsible Stock		138,289		364
Partner All Cap Growth		486,876		20,602
Partner All Cap Value		677,689		39,455
Partner All Cap		4,670,520		6,242,049
Large Cap Growth II		1,086,798		2,010,844
Large Cap Growth		6,722,415		99,084,900
Partner Growth Stock		2,942,104		6,839,874
Large Cap Value		5,593,671		19,775,779
Large Cap Stock		4,157,807		10,100,983
Large Cap Index		4,106,695		8,676,259
Equity Income Plus		518,753		31,256
Balanced		1,460,807		5,414,769
High Yield		16,690,288		43,535,754
Diversified Income Plus		1,392,495		5,486,960
Partner Socially Responsible Bond		199,640		14,613
Income		12,143,999		48,098,625
Bond Index		3,698,752		5,528,410
Limited Maturity Bond		3,280,401		13,260,369
Mortgage Securities		409,704		1,804,039
Money Market		44,033,049		40,182,282

F-59

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values

A summary of units outstanding, unit values, net assets, expense ratios, investment income ratios and total return ratios for each of the five years in the period ended December 31, 2008, except as indicated in Note 1, follows:

Subaccount	2008			2007			2006			2005			2004
Aggressive Allocation
Units		5,932,767			5,640,278			4,801,392			1,248,862
Unit value	$	8.58		$	13.82		$	12.78		$	11.36
Deathclaim units		—			6,003			—			—
Deathclaim unit value	$	8.03		$	12.91		$	11.92		$	10.58
Net assets	$	51,471,184		$	79,334,958		$	62,944,899		$	15,608,923
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%
Investment income ratio (b)		1.51	%		0.59	%		0.00	%		0.10	%
Total return (c)		(37.92) - (37.83)	%		8.12 - 8.29	%		12.50 - 12.67	%		13.49	%
Moderately Aggressive Allocation
Units		20,733,970			20,167,809			14,524,702			3,666,481
Unit value	$	8.74		$	13.27		$	12.45		$	11.13
Deathclaim units		4,412			2,680			—			—
Deathclaim unit value	$	8.29		$	12.57		$	11.77		$	10.51
Net assets	$	183,237,436		$	270,796,619		$	183,020,053		$	41,930,245
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 -1.10	%
Investment income ratio (b)		2.03	%		0.83	%		0.00	%		0.51	%
Total return (c)		(34.13) - (34.03)	%		6.56 - 6.72	%		11.9 - 12.04	%		11.18	%
Moderate Allocation
Units		27,443,650			27,145,769			18,717,568			5,223,095
Unit value	$	9.09		$	12.71		$	12.04		$	10.92
Deathclaim units		15,265			4,093			—			—
Deathclaim unit value	$	8.73		$	12.20		$	11.53		$	10.44
Net assets	$	253,173,872		$	350,477,316		$	229,266,864		$	57,997,440
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%
Investment income ratio (b)		2.46	%		1.19	%		0.00	%		0.88	%
Total return (c)		(28.53) - (28.42)	%		5.60 - 5.76	%		10.25 - 10.48	%		9.05	%
Moderately Conservative Allocation
Units		11,526,368			10,588,933			6,624,643			2,084,576
Unit value	$	9.47		$	12.06		$	11.55		$	10.66
Deathclaim units		6,913			6,254			—			1,738
Deathclaim unit value	$	9.20		$	11.70		$	11.19		$	10.31
Net assets	$	111,138,334		$	129,567,204		$	77,649,948		$	22,524,992
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%
Investment income ratio (b)		2.72	%		1.57	%		0.00	%		1.41	%
Total return (c)		(21.48) - (21.36)	%		4.46 - 4.61	%		8.31 - 8.5	%		6.49	%

F-60

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Technology
Units		225,247			298,388			342,487			439,660			448,960
Unit value	$	6.62		$	12.96		$	11.80		$	11.55		$	11.26
Deathclaim units		—			—			—			—			—
Deathclaim unit value	$	6.07		$	11.86		$	10.78		$	10.54			—
Net assets	$	1,536,080		$	3,960,525		$	4,116,507		$	5,136,228		$	5,101,014	%
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.00	%		0.00	%		0.00	%		0.32	%		0.00	%
Total return (c)		(48.89) - (48.81)	%		9.85 - 10.02	%		2.13 - 2.25	%		2.59	%		3.70
Partner Healthcare
Units		121,558
Unit value	$	8.89
Deathclaim units		—
Deathclaim unit value	$	8.90
Net assets	$	1,087,530
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		0.11	%
Total return (c)		(11.14) - (11.05)	%
Partner Natural Resources
Units		199,863
Unit value	$	5.69
Deathclaim units		—
Deathclaim unit value	$	5.69
Net assets	$	1,147,372
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		0.12	%
Total return (c)		(43.11) - (43.05)	%
Partner Emerging Markets
Units		74,508
Unit value	$	5.60
Deathclaim units		—
Deathclaim unit value	$	5.61
Net assets	$	417,237
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		1.18	%
Total return (c)		(44.00) - (43.94)	%

F-61

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Real Estate Securities
Units		978,572			1,333,729			1,920,023			2,330,908			2,005,881
Unit value	$	13.10		$	21.11		$	25.66		$	19.33		$	17.26
Deathclaim units		4,352			3,185			17,934			—
Deathclaim unit value	$	7.21		$	11.60		$	14.08		$	10.59
Net assets	$	13,212,588		$	28,840,023		$	50,337,468		$	45,636,439		$	34,978,023
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		5.93	%		1.42	%		1.46	%		1.32	%		0.00	%
Total return (c)		(37.93) - (37.84)	%		(17.72) - (17.60)	%		32.73 - 32.98	%		12.02	%		33.70	%
Partner Utilities
Units		95,404
Unit value	$	6.99
Deathclaim units		—
Deathclaim unit value	$	7.00
Net assets	$	673,661
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		1.82	%
Total return (c)		(30.09) - (30.02)	%
Partner Small Cap Growth
Units		600,806			718,267			892,400			1,107,544			1,357,725
Unit value	$	8.22		$	14.64		$	13.64		$	12.25		$	11.92
Deathclaim units		—			—			89			—
Deathclaim unit value	$	7.06		$	12.56		$	11.68		$	10.48
Net assets	$	5,022,376		$	10,765,924		$	12,319,952		$	13,676,628		$	16,287,592
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%
Total return (c)		(43.86) - (43.77)	%		7.33 - 7.49	%		11.38 - 11.5	%		2.83	%		10.10	%

F-62

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Partner Small Cap Value
Units		482,424			605,547			754,291			877,831			759,331
Unit value	$	14.96		$	20.73		$	21.18		$	17.62		$	16.99
Deathclaim units		492			724			88			—
Deathclaim unit value	$	8.81		$	12.19		$	12.44		$	10.33
Net assets	$	7,434,690		$	12,854,504		$	16,407,962		$	15,785,620		$	13,028,421
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 -1.10	%		1.10	%
Investment income ratio (b)		1.19	%		0.35	%		0.21	%		0.25	%		0.00	%
Total return (c)		(27.85) - (27.74)	%		(2.12) - (1.97)	%		20.19 - 20.38	%		3.73	%		20.92	%
Small Cap Stock
Units		991,651			1,290,637			1,568,243			1,562,137			1,076,065
Unit value	$	9.96		$	16.12		$	15.36		$	13.77		$	12.79
Deathclaim units		1,605			7,861			90			—
Deathclaim unit value	$	7.65		$	12.36		$	11.76		$	10.52
Net assets	$	10,047,035		$	21,142,515		$	24,258,849		$	21,576,459		$	13,792,280
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.99	%		0.29	%		0.11	%		0.03	%		0.00	%
Total return (c)		(27.85) - (27.74)	%		4.97 - 5.13	%		11.53 - 11.77	%		7.62	%		19.61	%
Small Cap Index
Units		840,138			1,133,988			1,395,082			1,827,454			1,828,948
Unit value	$	10.26		$	15.05		$	15.30		$	13.48		$	12.70
Deathclaim units		494			1,218			977			89
Deathclaim unit value	$	7.91		$	11.58		$	11.75		$	10.34
Net assets	$	8,802,166		$	17,372,036		$	21,642,603		$	24,892,320		$	23,386,933
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		1.17	%		0.63	%		0.75	%		0.66	%		0.34	%
Total return (c)		(27.85) - (27.74)	%		(1.60) - (1.45)	%		13.49 - 13.66	%		6.15	%		20.76	%

F-63

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Mid Cap Growth II
Units		429,992			587,402			759,795			1,084,177			1,352,327
Unit value	$	7.32		$	12.92		$	10.90		$	10.15		$	9.23
Deathclaim units		—			—			—			—
Deathclaim unit value	$	7.66		$	13.49		$	11.37		$	10.57
Net assets	$	3,214,043		$	7,713,275		$	8,388,555		$	11,082,811		$	12,513,731
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.28	%		0.47	%		0.19	%		0.00	%		0.00	%
Total return (c)		(43.34) - (43.26)	%		18.48 - 18.66	%		7.42 - 7.59	%		10.01	%		15.13	%
Mid Cap Growth
Units		9,415,344			11,503,724			14,792,820			19,920,632			24,875,787
Unit value	$	12.87		$	22.10		$	18.63		$	17.34		$	15.76
Deathclaim units		7,901			12,814			5,617			3,367
Deathclaim unit value	$	7.88		$	13.51		$	11.37		$	10.57
Net assets	$	123,948,003		$	259,718,889		$	280,925,115		$	350,851,657		$	396,867,534
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		1.12	%		0.42	%		0.11	%		0.00	%		0.00	%
Total return (c)		(41.77) - (41.69)	%		18.60 - 18.78	%		7.46 - 7.61	%		10.05	%		10.14	%
Partner Mid Cap Value
Units		236,945			266,808			205,630			131,226
Unit value	$	8.60		$	13.38		$	13.12		$	11.46
Deathclaim units		—			—			—			—
Deathclaim unit value	$	7.91		$	12.29		$	12.03		$	10.49
Net assets	$	2,059,267		$	3,608,280		$	2,732,135		$	1,506,963
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%
Investment income ratio (b)		1.57	%		0.00	%		1.05	%		0.64	%
Total return (c)		(35.76) - (35.67)	%		2.02 - 2.17	%		14.45 - 14.67	%		14.47	%

F-64

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Mid Cap Stock
Units		1,114,380			1,464,623			1,672,108			1,462,130			603,101
Unit value	$	9.69		$	16.54		$	15.82		$	14.11		$	12.25
Deathclaim units		1,232			8,260			138			146
Deathclaim unit value	$	7.32		$	12.47		$	11.92		$	10.61
Net assets	$	11,041,971		$	24,714,720		$	26,845,561		$	20,845,018		$	7,417,402
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		1.11	%		0.84	%		0.34	%		0.13	%		0.00	%
Total return (c)		(41.41) - (41.32)	%		4.54 - 4.69	%		12.14 - 12.3	%		15.11	%		15.95	%
Mid Cap Index
Units		830,975			1,095,962			1,331,329			1,792,216			1,701,636
Unit value	$	9.89		$	15.69		$	14.74		$	13.57		$	12.22
Deathclaim units		493			1,189			1,002			—
Deathclaim unit value	$	7.76		$	12.30		$	11.54		$	10.61
Net assets	$	8,413,410		$	17,538,979		$	19,938,244		$	24,597,188		$	20,957,278
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		1.39	%		0.97	%		1.04	%		0.51	%		0.00	%
Total return (c)		(36.99) - (36.90)	%		6.44 - 6.60	%		8.64 - 8.77	%		11.12	%		14.49	%
Partner Worldwide Allocation
Units		382,954
Unit value	$	6.05
Deathclaim units		—
Deathclaim unit value	$	6.05
Net assets	$	287,210,434
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		1.41	%
Total return (c)		(39.54) - (39.48)	%
Partner International Stock
Units		9,042,052			11,638,102			14,433,801			18,157,750			19,151,662
Unit value	$	11.51		$	19.77		$	18.08		$	15.04		$	13.37
Deathclaim units		7,579			13,166			7,068			380
Deathclaim unit value	$	8.42		$	14.43		$	13.18		$	10.95
Net assets	$	106,359,742		$	234,425,290		$	265,038,475		$	276,569,452		$	258,870,860
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		4.82	%		1.35	%		1.49	%		1.14	%		1.36	%
Total return (c)		(41.75) - (41.66)	%		9.35 - 9.52	%		20.20 - 20.34	%		12.47	%		14.38	%

F-65

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Partner Socially Responsible Stock
Units		15,112
Unit value	$	6.45
Deathclaim units		—
Deathclaim unit value	$	6.46
Net assets	$	97,528
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		0.44	%
Total return (c)		(35.46) - (35.40)	%
Partner All Cap Growth
Units		55,029
Unit value	$	5.30
Deathclaim units		—
Deathclaim unit value	$	5.31
Net assets	$	291,848
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		0.00	%
Total return (c)		(46.96) - (46.91)	%
Partner All Cap Value
Units		77,830
Unit value	$	5.54
Deathclaim units		—
Deathclaim unit value	$	5.54
Net assets	$	430,966
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		2.48	%
Total return (c)		(44.63) - (44.57)	%
Partner All Cap
Units		1,585,263			2,073,027			2,267,430			2,557,962			2,580,719
Unit value	$	7.75		$	13.73		$	11.53		$	10.10		$	8.63
Deathclaim units		253			256			—			—
Deathclaim unit value	$	8.26		$	14.61		$	12.25		$	10.71
Net assets	$	12,507,347		$	28,899,991		$	26,473,680		$	26,080,169		$	22,420,400
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.74	%		0.45	%		0.45	%		0.50	%		0.08	%
Total return (c)		(43.53) - (43.45)	%		19.04 -19.22	%		14.16 - 14.39	%		17.04	%		12.39	%

F-66

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Large Cap Growth II
Units		503,414			679,669			923,150			1,277,490			1,563,487
Unit value	$	7.91		$	12.19		$	10.58		$	10.02		$	9.46
Deathclaim units		—			—			—			—
Deathclaim unit value	$	7.34		$	12.76		$	11.06		$	10.46
Net assets	$	3,650,710		$	8,537,817		$	9,998,839		$	13,062,267		$	15,042,500
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.63	%		0.63	%		0.62	%		0.91	%		0.00	%
Total return (c)		(42.47) - (35.05)	%		15.19 - 15.36	%		5.59 - 5.74	%		5.91	%		6.38	%
Large Cap Growth
Units		7,684,670			9,471,449			12,248,379			16,269,368			19,880,712
Unit value	$	36.32		$	63.31		$	54.83		$	51.94		$	49.07
Deathclaim units		40,165			33,395			21,600			6,896
Deathclaim unit value	$	7.34		$	12.78		$	11.05		$	10.45
Net assets	$	2,236,658		$	615,613,866		$	687,629,588		$	862,406,271		$	993,078,624
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		1.11	%		1.03	%		0.54	%		0.84	%		0.52	%
Total return (c)		(42.64) - (42.55)	%		15.46 - 15.64	%		5.56 - 5.76	%		5.84	%		6.50	%
Partner Growth Stock
Units		1,325,787			1,861,093			2,179,984			2,885,514			3,079,133
Unit value	$	7.91		$	13.83		$	12.80		$	11.43		$	10.87
Deathclaim units		2,221			370			—			—
Deathclaim unit value	$	7.32		$	12.78		$	11.81		$	10.53
Net assets	$	10,667,263		$	26,107,555		$	28,230,604		$	33,291,751		$	33,670,949
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		0.79	%		0.52	%		0.21	%		0.51	%		0.00	%
Total return (c)		(42.77) - (42.68)	%		8.07 - 8.23	%		11.96 - 12.12	%		5.17	%		8.74	%
Large Cap Value
Units		4,956,347			6,475,784			7,939,235			9,641,269			9,211,758
Unit value	$	9.17		$	14.12		$	13.64		$	11.61		$	10.97
Deathclaim units		4,046			10,749			418			1,271
Deathclaim unit value	$	8.33		$	12.81		$	12.35		$	10.50
Net assets	$	46,510,085		$	93,214,917		$	109,812,747		$	113,122,371		$	101,825,393
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		3.53	%		1.22	%		1.19	%		1.09	%		0.00	%
Total return (c)		(35.05) - (34.95)	%		3.54 - 3.69	%		17.47 - 17.66	%		5.85	%		12.88	%

F-67

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Large Cap Stock
Units		2,609,889			3,477,116			4,342,304			5,527,867			4,408,996
Unit value	$	7.91		$	12.83		$	12.06		$	10.89		$	10.46
Deathclaim units		3,252			1,441			444			—
Deathclaim unit value	$	7.58		$	12.28		$	11.53		$	10.40
Net assets	$	21,039,819		$	45,310,286		$	52,967,780		$	60,716,149		$	46,382,647
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		2.90	%		1.14	%		0.81	%		0.82	%		0.00	%
Total return (c)		(38.37) - (38.27)	%		6.39 - 6.55	%		10.73 - 10.85	%		4.16	%		7.30	%
Large Cap Index
Units		1,908,622			2,573,893			3,082,119			4,005,231			3,792,220
Unit value	$	8.70		$	13.99		$	13.45		$	11.79		$	11.38
Deathclaim units		488			1,958			389			—
Deathclaim unit value	$	7.73		$	12.41		$	11.91		$	10.42
Net assets	$	16,890,310		$	36,532,145		$	41,949,413		$	47,661,032		$	43,456,684
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 -1.10	%		0.95 - 1.10	%		0.95 -1.10	%		1.10	%
Investment income ratio (b)		2.30	%		1.67	%		1.70	%		1.50	%		0.97	%
Total return (c)		(37.81) - (37.72)	%		4.01 - 4.17	%		14.12 - 14.32	%		3.61	%		9.34	%
Equity Income Plus
Units		56,158
Unit value	$	6.99
Deathclaim units		—
Deathclaim unit value	$	7.00
Net assets	$	392,525
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		3.27	%
Total return (c)		(30.10) - (30.03)	%
Balanced
Units		1,116,315			1,534,043			1,892,510			2,594,448			2,550,541
Unit value	$	9.91		$	13.55		$	12.99		$	11.79		$	11.47
Deathclaim units		114			987			214			—
Deathclaim unit value	$	8.70		$	11.87		$	11.37		$	10.30
Net assets	$	11,338,806		$	21,203,886		$	24,988,956		$	30,825,627		$	29,460,663
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 -1.10	%		0.95 - 1.10	%		0.95 -1.10	%		1.10	%
Investment income ratio (b)		3.74	%		3.03	%		3.00	%		2.51	%		1.97	%
Total return (c)		(26.87) - (26.76)	%		4.31 - 4.47	%		10.19 - 10.36	%		2.78	%		6.90	%

F-68

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
High Yield
Units		5,057,916			6,421,204			8,370,455			11,171,281			13,872,317
Unit value	$	24.33		$	31.16		$	30.66		$	28.11		$	27.32
Deathclaim units		16,753			18,950			15,505			6,893
Deathclaim unit value	$	8.83		$	11.29		$	11.09		$	10.15
Net assets	$	127,694,300		$	206,883,507		$	264,626,224		$	322,219,121		$	387,232,664
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		8.95	%		8.07	%		7.97	%		8.07	%		8.15	%
Total return (c)		(21.92) - (21.81)	%		1.62 - 1.77	%		9.09 - 9.3	%		2.89	%		8.94	%
Diversified Income Plus
Units		964,390			1,329,754			988,564			674,099			832,491
Unit value	$	11.26		$	14.83		$	15.14		$	13.40		$	13.08
Deathclaim units		1,062			—			—			—
Deathclaim unit value	$	8.56		$	11.26		$	11.48		$	10.14
Net assets	$	11,190,025		$	20,142,759		$	15,198,971		$	9,191,082		$	11,051,254
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		6.49	%		2.03	%		3.30	%		7.50	%		6.90	%
Total return (c)		(24.08) - (23.96)	%		(2.07) - (1.92)	%		12.98 - 13.17	%		2.47	%		6.83	%
Partner Socially Responsible Bond
Units		18,286
Unit value	$	10.19
Deathclaim units		—
Deathclaim unit value	$	10.20
Net assets	$	186,379
Ratio of expenses to net assets (a)		0.95 - 1.10	%
Investment income ratio (b)		2.93	%
Total return (c)		1.93 - 2.03	%

F-69

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Income
Units		5,215,125			6,663,658			8,412,493			11,226,596			13,903,056
Unit value	$	28.15		$	31.93		$	31.10		$	29.83		$	29.48
Deathclaim units		9,617			20,352			19,443			12,613
Deathclaim unit value	$	9.55		$	10.81		$	10.51		$	10.07
Net assets	$	151,863,685		$	219,481,655		$	269,339,332		$	343,282,694		$	418,564,640
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		5.71	%		5.30	%		5.19	%		4.70	%		4.37	%
Total return (c)		(11.82) - (11.68)	%		2.65 - 2.81	%		4.26 - 4.4	%		1.18	%		3.59	%
Bond Index
Units		1,200,230			1,420,631			1,667,490			2,147,680			2,355,756
Unit value	$	12.02		$	12.26		$	11.73		$	11.40		$	11.28
Deathclaim units		1,922			2,132			256			—
Deathclaim unit value	$	10.66		$	10.85		$	10.37		$	10.06
Net assets	$	14,750,241		$	17,668,009		$	19,825,040		$	24,830,274		$	26,901,608
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		4.88	%		4.88	%		4.72	%		4.25	%		4.11	%
Total return (c)		(1.91) - (1.76)	%		4.52 - 4.68	%		2.88 - 3.04	%		1.05	%		2.77	%
Limited Maturity Bond
Units		3,235,745			4,260,849			5,239,739			6,762,295			7,618,978
Unit value	$	10.74		$	11.60		$	11.28		$	10.91		$	10.82
Deathclaim units		1,048			2,196			2,299			860
Deathclaim unit value	$	9.92		$	10.70		$	10.39		$	10.03
Net assets	$	35,639,583		$	50,444,668		$	60,087,071		$	74,799,668		$	83,209,890
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		4.56	%		4.75	%		4.44	%		3.68	%		2.85	%
Total return (c)		(7.48) - (7.34)	%		2.86 - 3.02	%		3.41 - 3.59	%		0.83	%		0.78	%
Mortgage Securities
Units		344,902			484,456			644,931			891,445			799,872
Unit value	$	10.62		$	11.30		$	10.86		$	10.49		$	10.40
Deathclaim units		30			25			216			—
Deathclaim unit value	$	10.20		$	10.84		$	10.41		$	10.04
Net assets	$	3,732,863		$	5,553,900		$	7,100,326		$	9,434,872		$	8,391,017
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		4.54	%		4.99	%		4.98	%		4.40	%		4.01	%
Total return (c)		(6.00) - (5.86)	%		3.96 - 4.12	%		3.57 - 3.69	%		0.87	%		2.88	%

F-70

THRIVENT VARIABLE ANNUITY ACCOUNT B

Notes to Financial Statements, continued

(6) Unit Values, continued

Subaccount	2008			2007			2006			2005			2004
Money Market
Units		42,869,495			41,625,448			36,659,277			32,088,893			39,871,323
Unit value	$	2.02		$	1.98		$	1.91		$	1.84		$	1.81
Deathclaim units		35,573			16,028			25,047			1,672
Deathclaim unit value	$	1.11		$	1.09		$	1.04		$	1.01
Net assets	$	88,165,730		$	84,342,726		$	71,514,426		$	60,247,264		$	73,233,007
Ratio of expenses to net assets (a)		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		0.95 - 1.10	%		1.10	%
Investment income ratio (b)		2.92	%		5.05	%		4.74	%		2.80	%		0.94	%
Total return (c)		1.83 - 1.98	%		4.02 - 4.18	%		3.33 - 3.54	%		1.73	%		(0.13)	%

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

(b) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against the contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income is affected by the timing of the declaration of dividends by the underlying fund in which the subaccount invests.

(c) These amounts represent the total return for periods indicated, including changes in the value of the underlying fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation in Note 1 indicate the effective date of the investment option in the Variable Account. The total return is calculated for each period indicated or from the inception date through the end of the reporting period. The total return is calculated using accumulation unit values.

F-71

PART C. OTHER INFORMATION

Item 24. Financial Statements and Exhibits

(a) Financial Statements:

Part A:	None.
Part B:	Financial Statements of Depositor. (*)
	Financial Statements of Thrivent Variable Annuity Account B. (*)

(b) Exhibits:

1. Resolution of the Board of Directors of Lutheran Brotherhood authorizing the establishment of Thrivent Variable Annuity Account B (“Registrant”). (1)

2. Not Applicable.

3. Principal Underwriting Agreement between Depositor and Thrivent Investment Management Inc. (3)

4. Form of Contract. (1)

5. Contract Application Form. (1)

6. Articles of Incorporation and Bylaws of Depositor. (*)

7. Not Applicable.

8. Participation Agreement between the Depositor and the Fund as of December 15, 2003. (2)

9. Opinion of counsel as to the legality of the securities being registered (including written consent). (*)

10. Consent of Independent Registered Public Accounting Firm — Ernst & Young LLP. (*)

11. Not Applicable.

12. Not Applicable.

13.(a) Powers of Attorney for: (4)

Dr. Addie J. Butler	Paul W. Middeke	Dr. Kurt M. Senske
James M. Hushagen	Frank H. Moeller	Dr. Albert K. Siu
F. Mark Kuhlmann	Alice M. Richter	Allan R. Spies
Richard C. Lundell	James H. Scott	Adrian M. Tocklin

13.(b) Power of Attorney for Frederick G. Kraegel(*)

(1) Incorporated by reference from Post-Effective Amendment No. 8 to the registration statement of Thrivent Variable Annuity Account I, file no. 33-67012, Accession No. 0000910240-98-000010, filed on April 30, 1998.

1

(2) Incorporated by reference from Post-Effective Amendment No. 1 to the registration statement of Thrivent Variable Life Account I, Registration Statement No. 333-103454, Accession No. 0001193125-04-064690, filed on April 19, 2004.

(3) Incorporated by reference from Post-Effective Amendment No. 5 to the registration statement of Thrivent Variable Annuity Account B, Registration Statement No. 333-76154, Accession No. 0001193125-06-084697, filed on April 29, 2006.

(4) Incorporated by reference from Post-Effective Amendment No. 7 to the registration statement of Thrivent Variable Annuity Account B, Registration Statement No. 333-76154, Accession No. 0001193125-08-086693, filed on April 22, 2008.

(*) Filed herewith.

Item 25. Directors and Officers of the Depositor

The directors, executive officers and, to the extent responsible for variable annuity operations, other officers of Depositor, are listed below. Unless otherwise noted, their principal business address is 625 Fourth Avenue South, Minneapolis, Minnesota 55415.

Name and Principal Business Address	Positions and Offices with Depositor
Bruce J. Nicholson	Chairman of the Board, President and CEO
Dr. Addie J. Butler	Director
5417 Laurens Street
Philadelphia, Pennsylvania 19144
James M. Hushagen	Director
Eisenhower & Carlson, PLLC
1201 Pacific Avenue, Suite 1200
Tacoma, Washington 98402-4395
Frederick G. Kraegel	Director
1225 Hyde Lane
Henrico, VA 23229
F. Mark Kuhlman	Director
SSE Inc.
77 West Port Plaza, Suite 500
St. Louis, Missouri 63146
Richard C. Lundell	Director
7341 Dogwood
Excelsior, Minnesota 55331
Paul W. Middeke	Director
55 Forest Valley Court
St. Charles, Missouri 63301
Frank H. Moeller	Director
811 Marton Springs, Suite 600
Austin, Texas 78704
Alice M. Richter	Director
14810 Blakeney Road
Eden Prarie, MN 55347

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James H. Scott	Director
2853 Tansey Lane
Chester Springs, Pennsylvania 19425
Dr. Kurt M. Senske	Director
Lutheran Social Services
8305 Cross Park Drive
Austin, Texas 78754-5154
Dr. Albert Siu	Director
Boston Scientific
1 Boston Scientific Place
Mail Stop A6
Natick, Massachusetts 01761-1537
Allan R. Spies	Director
747 Detroit Street
Denver, Colorado 80206
Adrian M. Tocklin	Director
4961 Bacopa Lane, Suite 801
St. Petersburg, Florida 33715
Bradford L. Hewitt	Senior Executive Vice President and Chief Operating Officer
Pamela J. Moret	Executive Vice President, Strategic Development
James A. Thomsen	Executive Vice President, Member Services
David M. Anderson	Senior Vice President, Centralized Service
4321 North Ballard Road
Appleton, WI 54919
Randall L. Boushek	Senior Vice President & Chief Financial Officer
Timothy J. Lehman	Senior Vice President, Member Experience Strategy
Jennifer H. Martin, Ph.D.	Senior Vice President, Human Resources
Teresa J. Rasmussen	Senior Vice President, General Counsel and Secretary
Jon M. Stellmacher	Executive Vice President, Chief Administrative Officer
4321 North Ballard Road
Appleton, Wisconsin 54919
Russell W. Swansen	Senior Vice President and Chief Investment Officer
Marie A. Uhrich	Senior Vice President, Communications
Holly J. Morris, Ph.D.	Senior Vice President and Chief Information Officer

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Katie S. Kloster	Vice President and Rule 38(a)-1 Chief Compliance Officer
Paul B. Zastrow	Vice President and Treasurer

Item 26. Persons Controlled by or Under Common Control with Depositor or Registrant

Registrant is a separate account of Depositor. The Depositor is a fraternal benefit society organized under the laws of the State of Wisconsin and is owned by and operated for its members. It has no stockholders and is not subject to the control of any affiliated persons.

The following list shows the relationship of each wholly-owned direct and indirect subsidiary to the Depositor. Financial statements of Thrivent Financial will be filed on a consolidated basis with regard to each of the foregoing entities.

Thrivent Financial Entities	Primary Business	State of Incorporation
Thrivent Financial for Lutherans	Fraternal benefit society offering financial services and products	Wisconsin
Thrivent Financial Holdings, Inc.	Holding Company with no independent operations	Delaware
Thrivent Financial Bank	Federally chartered bank	Federal Charter
Thrivent Investment Management Inc.	Broker-dealer	Delaware
Thrivent Asset Management LLC (Co-owned subsidiary of Thrivent Life Insurance Company (40%) and Thrivent Investment Management Inc. (60%))	Limited liability company and investment adviser	Delaware
North Meadows Investment Ltd.	Organized for the purpose of holding and investing in real estate	Wisconsin
Thrivent Service Organization, Inc.	General business corporation	Wisconsin
Thrivent Financial Lifelong Resources, Inc.	Engaged in educational-type programs	Minnesota
Thrivent Financial Investor Services Inc.	Transfer agent	Pennsylvania
Thrivent Property & Casualty Insurance Agency, Inc.	Auto and homeowners insurance agency	Minnesota
Thrivent Insurance Agency Inc.	Licensed life and health insurance agency	Minnesota
Thrivent Life Insurance Company	Life insurance company	Minnesota

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Item 27. Number of Contract Owners

There were 55,029 qualified contracts and 18,682 non-qualified contracts as of March 31, 2009.

Item 28. Indemnification

Section 33 of Depositor’s Bylaws; Article VIII the Fund’s Articles of Incorporation; Section 4.01 of the Fund’s First Amended and Restated Bylaws; and Section Eight of Thrivent Investment Mgt.’s Articles of Incorporation, contain provisions requiring the indemnification by Depositor, the Funds, and Thrivent Investment Mgt. of their respective directors, officers and certain other individuals for any liability arising based on their duties as directors, officers or agents of the Depositor, Fund or Thrivent Investment Mgt., unless, in the case of the Fund, such liability arises due to the willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of such office.

In addition, Section XII of the Investment Advisory Agreement between the Fund and Depositor contain provisions in which the Funds and Depositor mutually agree to indemnify and hold the other party (including its officers, agents, and employees) harmless for any and all loss, cost damage and expense, including reasonable attorney’s fees, incurred by the other party arising out of their performance under the Agreement, unless such liability is incurred as a result of the party’s gross negligence, bad faith, or willful misfeasance or reckless disregard of its obligations and duties under the Agreement.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of Registrant, pursuant to the foregoing provisions or otherwise, Registrant has been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Depositor, the Funds, or Thrivent Investment Mgt. of expenses incurred or paid by a director or officer or controlling person of Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person of Registrant in connection with the securities being registered, Depositor, the Funds, or Thrivent Investment Mgt. will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether or not such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 29. Principal Underwriter

(a) Other Activity. Thrivent Investment Mgt. is the principal underwriter of the Contracts.

(b) Management. The directors and officers of Thrivent Investment Mgt. are set out below. Unless otherwise indicated, the principal business address of each person named below is 625 Fourth Avenue South, Minneapolis, Minnesota 55415.

Name and Principal Business Address	Positions and Offices with Underwriter
James A. Thomsen	Director and President
David M. Anderson	Director and Senior Vice President
4321 North Ballard Road
Appleton, Wisconsin 54919-0001
Karen L. Larson	Director and Vice President

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Jennifer R. Relien	General Counsel and Secretary
Randall R. Boushek	Director
Andrea C. Golis	Chief Compliance Officer
Brian W. Picard 4321 North Ballard Road Appleton, Wisconsin 54919-0001	Director FSO Compliance, Privacy and Anti-Money Laundering Officer
Kurt S. Tureson	Vice President, Chief Financial Officer and Treasurer
Karl D. Anderson	Vice President
Michael J. Fuehrmeyer	Vice President
7197 Golfview Ct.
Yorkville, IL 60560
Michael J. Haglin	Vice President
Knut A. Olson	Vice President
4321 North Ballard Road
Appleton, WI 54919
Timothy P. Schmidt	Vice President
701 Xenia Ave. S.
Suite 550
Golden Valley, MN 55416-1078
Nikki L. Sorum	Vice President
Eric W. Verseman	Vice President
Eric J. Grinde	Assistant Vice President
David J. Kloster	Assistant Vice President
Jennifer M. Fernjack	Assistant Vice President Compliance Registered Options Principal
Jennifer J. Pope 4321 North Ballard Road Appleton, WI 54919	Assistant Vice President Senior Registered Options Principal
Cynthia J. Nigbur	Assistant Secretary

Item 30. Location of Accounts and Records

The accounts and records of Registrant are located at the offices of Depositor at 625 Fourth Avenue South, Minneapolis, Minnesota 55415 and 4321 North Ballard Road, Appleton, Wisconsin 54919.

Item 31. Management Services

Not Applicable.

Item 32. Undertakings

Registrant will file a post-effective amendment to this Registration Statement as frequently as is necessary to ensure that the audited financial statements in this Registration Statement are never more than 16 months old for so long as payments under the Contracts may be accepted.

Registrant will include either (1) as part of any application to purchase a Contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information.

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Registrant will deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request.

Registrant understands that the restrictions imposed by Section 403(b)(11) of the Internal Revenue Code conflict with certain sections of the Investment Company Act of 1940 that are applicable to the Contracts. In this regard, Registrant is relying on a no-action letter issued on November 28, 1988 by the Office of Insurance Product and Legal Compliance of the SEC, and the requirements for such reliance have been complied with by Registrant.

Depositor hereby represents that, as to the individual flexible premium variable annuity contracts that are the subject of this registration statement, File Number 333-76154, that the fees and charges deducted under the contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred and the risks assumed by Thrivent Financial for Lutherans.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements of Securities Act Rule 485(b) for effectiveness of this amended Registration Statement of the Securities Act for effectiveness of this amended Registration Statement and the Registrant has duly caused this amendment to the Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Minneapolis and State of Minnesota on the 20th day of April, 2009.

THRIVENT VARIABLE ANNUITY ACCOUNT B
(Registrant)
By	THRIVENT FINANCIAL FOR LUTHERANS
	(Depositor, on behalf of itself and Registrant)
By	/s/ Bruce J. Nicholson
	Bruce J. Nicholson, President and Chief Executive Officer (Principal Executive Officer)

Pursuant to the requirements of the Securities Act of 1933, this post-effective amendment to the Registration Statement has been signed below by the following persons in the capacities indicated on the 20th day of April 2009:

/s/ Bruce J. Nicholson	President and Chief Executive Officer (Principal Executive Officer)
Bruce J. Nicholson
/s/ Randall L. Boushek	Senior Vice President and Chief Financial Officer
Randall L. Boushek	(Principal Financial Officer)
/s/ Paul B. Zastrow	Vice President and Treasurer
Paul B. Zastrow	(Principal Accounting Officer)

A Majority of the Board of Directors:*

Dr. Addie J. Butler	Paul W. Middeke	Dr. Kurt M. Senske
James M. Hushagen	Frank H. Moeller	Dr. Albert Siu
Frederick G. Kraegel	Alice M. Richter	Allan R. Spies
F. Mark Kuhlman	James H. Scott	Adrian M. Tocklin
Richard C. Lundell

* James M. Odland, by signing his name hereto, does hereby sign this document on behalf of each of the above-named directors of Thrivent Financial for Lutherans pursuant to a power of attorney duly executed by such persons.

/s/ James M. Odland	April 20, 2009
James M. Odland Attorney-in-Fact

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INDEX TO EXHIBITS

THRIVENT VARIABLE ANNUITY ACCOUNT B

EXHIBIT NO.
EX-99(b)6.	Articles of Incorporation and Bylaws of the Depositor
EX-99.B.9	Opinion and Consent of Counsel
EX-99.B.10.	Consent of Independent Registered Public Accounting Firm – Ernst & Young LLP
EX-99.B.13(b)	Powers of Attorney for Frederick G. Kraegel

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