FINANCIAL STATEMENTS
Venerable
Insurance and Annuity Company
Separate
Account EQ
For
the years ended December
31, 2023 and 2022
with
Report of Independent Auditors
As filed with the Securities and Exchange Commission on May 3, 2024
| Registration No. 333-273497 | |
| Registration No. 811-08524 |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
| REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | ☐ | |
| Pre-Effective Amendment No. 1 | ☒ | |
| Post-Effective Amendment No. ______ | ☐ | |
| AMENDMENT TO REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | ||
| Post-Effective Amendment No.493 | ☒ |
(Check appropriate box or boxes.)
(Exact Name of Registrant)
Venerable Insurance and Annuity Company
(Name of Depositor)
699 Walnut Street, Suite 1350
Des Moines, Iowa 50309-3942
(Address of Depositor’s Principal Executive Offices) (Zip Code)
800-366-0066
(Depositor’s Telephone Number, including Area Code)
J. Neil McMurdie
Vice President & Deputy General Counsel
Venerable Insurance and Annuity Company
1475 Dunwoody Drive, Suite 200
West Chester, Pennsylvania 19380
(Name and Address of Agent for Service)
Copy to:
Thomas E Bisset, Esq.
Eversheds Sutherland (US) LLP
700 Sixth Street, NW
Washington, DC 20001
Approximate Date of Public Offering: As soon as practicable after the effective date of this Registration Statement.
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until Registrant shall file a further amendment which specifically states that this Registration Statement shall become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
Title of Securities Being Registered: Deferred Combination Variable and Fixed Annuity Contract
PART A
INFORMATION REQUIRED IN A PROSPECTUS
6.0
SEPARATE ACCOUNT EQ OF VENERABLE INSURANCE AND ANNUITY COMPANY
THE ACCUMULATOR® SERIES (6.0) VARIABLE ANNUITY
SUPPLEMENT DATED May 24, 2024 TO
THE PROSPECTUS AND INITIAL SUMMARY PROSPECTUS,
EACH DATED May 24, 2024
This Supplement provides important information regarding an offer Venerable Insurance and Annuity Company (“VIAC," the "Company," or “we”) is making to you to exchange your Equitable Financial Life Insurance Company (“EFLIC”) Accumulator® Series variable annuity contract for a virtually identical VIAC variable annuity contract. The only differences between the contracts will be that VIAC will be the issuer and administrator of the VIAC Contract, which will be supported by VIAC’s Separate Account EQ. Please read this Supplement carefully and retain it for future reference.
In connection with VIAC's assumption reinsurance of certain Accumulator® Series variable annuity contracts (including your contract) issued by EFLIC ("EFLIC Contracts"), an owner of an EFLIC Contract may exchange his/her EFLIC Contract for an Accumulator® Series variable annuity contract issued by the Company ("VIAC Contract"), in accordance with the terms and conditions described below. EFLIC and VIAC have obtained all necessary state regulatory approvals for the assumption reinsurance transaction and this exchange offer.
The exchange offer is part of a corporate initiative by Equitable Holdings, the parent company of EFLIC, to restructure its operating entities. In 2021, EFLIC transferred the financial and risk management responsibilities for the EFLIC Contracts to an affiliate of VIAC. Equitable Holdings has now elected to transfer the overall management and administration responsibilities for the EFLIC Contracts to VIAC. The exchange offer will complete the transfer of administrative responsibilities and financial obligations for the EFLIC Contracts to VIAC for those that accept the exchange offer.
You are not required to accept the exchange offer. If you choose not to accept the exchange offer, your EFLIC Contract will continue unchanged. There will be no charges assessed against you or adverse tax consequences to you if you elect not to exchange your EFLIC Contract.
VIAC specializes in the management and administration of variable annuity contracts. If you choose to accept the exchange offer, your new VIAC Contract will be virtually identical to your EFLIC Contract except that VIAC will be the issuer and administrator of your VIAC Contract, which will be supported by VIAC’s Separate Account EQ. As a customer of VIAC, you will have access to VIAC’s online portal and knowledgeable customer service team for streamlined administrative service. All obligations, guarantees, and benefits under the VIAC Contract, including those associated with any optional benefit riders you elected, will be subject to the financial strength and claims-paying ability of VIAC. More information about VIAC, including VIAC’s financial strength ratings, is available by writing to VIAC Customer Service at P.O. Box 9271, Des Moines, Iowa 50306-9271 or by calling 1-800-366-0066. There will be no charges assessed against you or adverse tax consequences to you if you elect to exchange your EFLIC Contract for a VIAC Contract.
Terms and Conditions
You may only exchange your EFLIC Contract for a VIAC Contract of the same contract class and with the same optional benefit riders. The exchange offer is not available for partial exchanges.
When considering whether to accept the exchange offer, please carefully review this Supplement and the accompanying:
| · | A Notice of Transfer from EFLIC describing in detail the exchange and your options; and |
| · | The current initial summary prospectus for the VIAC Contract. |
You may also contact your financial professional or the EFLIC customer service center as described below with any additional questions you may have before making a decision about whether to exchange your EFLIC Contract for a VIAC Contract.
The full VIAC Contract prospectus is available as noted below.
| Page 1 of 5 |
6.0
To exchange your EFLIC Contract for a VIAC Contract:
| · | You must affirmatively accept the exchange offer, or |
| · | If the state law applicable to your EFLIC Contract as described in the Notice of Transfer allows us to rely on implied consent (which includes all states except California, Florida, Louisiana, Michigan, Minnesota, Washington, and Wisconsin), you may be deemed to have elected the exchange if you do not exercise your right to reject the exchange within a specified time period. |
Please refer to the accompanying Notice of Transfer for specific information with respect to your right to accept or reject the exchange offer, including the date by which you may accept or reject the exchange offer. We reserve the right to extend or terminate the exchange offer upon reasonable written notice to you.
Important Considerations
If you elect to exchange your EFLIC Contract for a VIAC Contract (either affirmatively or through implied consent):
| · | Your EFLIC Contract will terminate and EFLIC will have no further obligation to you for the guaranteed benefits under your EFLIC Contract; |
| · | VIAC will issue to you an Assumption Certificate that will endorse your EFLIC Contract and convert it into your new VIAC Contract; |
| · | VIAC will administer and be solely responsible to you for the guaranteed benefits under your VIAC Contract; |
| · | The Account Value you have invested in your EFLIC Contract will be transferred to your VIAC Contract and there will be no interruption to your investments as a result of the exchange; |
| · | The same Funds that are currently available under your EFLIC Contract will be available for investment under your VIAC Contract and after the exchange you may reallocate your Account Value among the Funds under your VIAC Contract in accordance with the investment restrictions under your optional benefit riders, if any; |
| · | Your death benefit under your VIAC Contract immediately after the exchange will be the same as your death benefit under your EFLIC Contract immediately before the exchange and will continue to be calculated in the same way; |
| · | You will receive credit for the time your contributions were invested in your EFLIC Contract for purposes of determining whether a withdrawal charge, if applicable, applies under your VIAC Contract; |
| · | We will not assess any charges against you as a result of the exchange; and |
| · | There will be no tax consequences to you as a result of the exchange. |
The features and benefits, available investment options, charges and deductions, and optional benefit riders under the VIAC Contract will be the same as those under your EFLIC Contract. Administration of the VIAC Contract will be provided by VIAC.
In the event an error occurs with respect to the Notice of Transfer provided to you about the exchange and your acceptance and rejection rights, or in the event a medical condition prevents you from exercising your rejection rights within the prescribed time period (if applicable), you may be eligible within a reasonable period of time, not to exceed 24 months from the date of the exchange, to request that the exchange be rescinded and have your EFLIC Contract reinstated.
If you elect not to exchange your EFLIC Contract for a VIAC Contract (either affirmatively or through implied consent), the EFLIC Contract will remain with EFLIC and EFLIC will continue to administer and be solely responsible for the guaranteed benefits under your EFLIC Contract.
Summary Comparison of EFLIC Contract and VIAC Contract
Your VIAC Contract will be virtually identical to your EFLIC Contract, except for the issuing company and the supporting separate account. This is shown by the following chart, which provides a brief summary comparison of some of the important features of the EFLIC Contracts and each corresponding VIAC Contract offered in exchange. You should not rely solely on this chart to decide whether to exchange your EFLIC Contract for a VIAC Contract.
| Page 2 of 5 |
6.0
The EFLIC and VIAC Contract names and related EDGAR Contract identifiers are as follows:
| EFLIC Contract | VIAC Contract | ||
| · | Accumulator (2006) - C000024755 | · | Accumulator (6.0) - C0000245596 |
| · | Accumulator Plus (2006) - C000024737 | (which includes Accumulator, Accumulator Plus, | |
| · | Accumulator Elite (2006) - C000024749 | Accumulator Elite, and Accumulator Select) | |
| · | Accumulator Select (8.0 Series) - C000027742 |
| Features | EFLIC Contract | VIAC Contract |
| Benefits | ||
| Available Investment Options |
• Funds • Guaranteed Interest Option • Account for Special Dollar Cost Averaging (Accumulator® and Accumulator® Elite only) |
• Same Funds available • Guaranteed Interest Option • Account for Special Dollar Cost Averaging (Accumulator® and Accumulator® Elite only) |
|
Credits (Accumulator® Plus only) |
Percentage based on 1st Year EFLIC Contract Contributions | Percentage based on 1st Year EFLIC Contract Contributions |
| Less than $500,000 | 4% | 4% |
| $500,000 - $999,999.99 | 4.5% | 4.5% |
| $1 million or more | 5% | 5% |
| Death Benefits |
• Standard Death Benefit • Annual Ratchet to Age 85 • Greater of 6% Roll-Up to Age 85 or Annual Ratchet to Age 85 • Earnings Enhancement • Return of Account Value |
• Standard Death Benefit • Annual Ratchet to Age 85 • Greater of 6% Roll-Up to Age 85 or Annual Ratchet to Age 85 • Earnings Enhancement • Return of Account Value |
| Living Benefits | • Guaranteed Minimum Income Benefit | • Guaranteed Minimum Income Benefit |
| Other Benefits |
• Rebalancing • Dollar Cost Averaging • Automatic Withdrawals • Loans (403(b) Contracts only) |
• Rebalancing • Dollar Cost Averaging • Automatic Withdrawals • Loans (403(b) Contracts only) |
| Annuity Payout Options |
• Life annuity • Life annuity with period certain • Life annuity with refund certain |
• Life annuity • Life annuity with period certain • Life annuity with refund certain |
| Transaction Expenses | ||
| Withdrawal Charge Period and Withdrawal Charge | ||
| Accumulator® |
7 years 7%, 7%, 6%, 6%, 5%, 3%, 1% (of each contribution) |
7 years 7%, 7%, 6%, 6%, 5%, 3%, 1% (of each contribution) |
| Accumulator® Plus |
8 years 8%, 8%, 7%, 7%, 6%, 5%, 4%, 3% (of each contribution) |
8 years 8%, 8%, 7%, 7%, 6%, 5%, 4%, 3% (of each contribution) |
| Accumulator® Elite |
4 years 8%, 7%, 6%, 5% (of each contribution) |
4 years 8%, 7%, 6%, 5% (of each contribution) |
| Accumulator® Select | None | None |
| Special Service Charges | ||
| Express Mail Charge | $90 | $90 (currently $20) |
| Wire Transfer Charge | $35 | $35 (currently waived) |
| Page 3 of 5 |
6.0
| Features | EFLIC Contract | VIAC Contract |
| Transaction Expenses (continued) | ||
| Duplicate Contract Charge | $35 (currently waived) | $35 (currently waived) |
| Annual Contract Expenses | ||
| Annual Administrative Charge | $30 (No charge if your Account Value is $50,000 or more on the Contract Date Anniversary) | $30 (No charge if your Account Value is $50,000 or more on the Contract Date Anniversary) |
| Base Contract Expenses | As an annual percentage of daily net assets in variable investment options | As an annual percentage of daily net assets in variable investment options |
| Accumulator® | 1.30% | 1.30% |
| Accumulator® Plus | 1.55% | 1.55% |
| Accumulator® Elite | 1.65% | 1.65% |
| Accumulator® Select | 1.70% | 1.70% |
| Standard Death Benefit or Return of Account Value | No Charge | No Charge |
| Optional Benefit Expenses | ||
| Guaranteed Minimum Death Benefit Charge | As an annual percentage of benefit base | As an annual percentage of benefit base |
| Annual Ratchet to Age 85 | Current and Maximum: 0.25% | Current and Maximum: 0.25% |
| Greater of 6% Roll-Up to Age 85 or Annual Ratchet to Age 85 | ||
| EFLIC Contracts issued on or after January 16, 2007 | Current and Maximum: 0.65% | Current and Maximum: 0.65% |
| EFLIC Contracts issued prior to January 16, 2007 | Current and Maximum: 0.60% | Current and Maximum: 0.60% |
| Earnings Enhancement | As an annual percentage of Account Value | As an annual percentage of Account Value |
| 0.35% | 0.35% | |
| Guaranteed Minimum Income Benefit Charge | As an annual percentage of benefit base | As an annual percentage of benefit base |
| Current and Maximum: 0.65% | Current and Maximum: 0.65% | |
| Net Loan Interest Charge (403(b) Contracts only) | As an annual percentage of amounts held in the loan reserve account | As an annual percentage of amounts held in the loan reserve account |
| 2.00% | 2.00% | |
| Annual Fund Expenses | ||
| Minimum | […]% | […]% |
| Maximum | […]% | […]% |
Please note that EFLIC Contracts (and, consequently, a VIAC Contract issued in exchange for an EFLIC Contract) may provide different features and benefits from, and impose different costs than, those summarized in this chart because of differences imposed by the state in which the EFLIC Contract was issued. All material variations have been described in Appendix E to the full VIAC Contract prospectus. For more complete details, you should carefully review the full VIAC Contract prospectus and compare it to the full EFLIC Contract prospectus.
| Page 4 of 5 |
6.0
Tax Matters
We believe that there will be no adverse tax consequences to you as a result of the assumption reinsurance agreement between EFLIC and VIAC or the exercise of your acceptance or rejection rights in relation to the exchange offer described in this Supplement. Notwithstanding, we recommend that you consult with your tax advisor when considering the exchange offer.
More Information
This Supplement should be read in conjunction with the Notice of Transfer and the VIAC Contract prospectus.
The full VIAC Contract prospectus is available online at https://docs.venerable.com/#/landing?prod=92264H1005& doctype=spros. You can also request a copy of the full VIAC Contract prospectus by calling VIAC Customer Service at 1-800-366-0066 or by sending an email request to smb-usa-mailbox@venerable.com.
The full EFLIC Contract prospectus is available online at www.equitable.com/ICSR#EQH146639. You can also request a copy of the full EFLIC Contract prospectus by calling 1-800-789-7771.
If you have any questions regarding the exchange offer, please contact your financial representative or call the EFLIC customer service center at 1-855-433-4025. Written inquiries may be mailed to:
Equitable Financial Life Insurance Company
Retirement Service Solutions
8501 IBM Drive, Suite 150-IR
Charlotte, NC 28262-4333
| Page 5 of 5 |
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Venerable Insurance and Annuity Company
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and its Separate Account EQ
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The
Accumulator® Series (6.0)
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•
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Subaccounts of the Separate Account, each of which invests in an underlying mutual fund (the “Funds”);
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•
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The Guaranteed Interest Option; and
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•
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The Account for Special Dollar Cost Averaging (“DCA”) (accepts only contributions, if available, and applies to Accumulator® and Accumulator® EliteSM Contracts only).
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•
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Qualified defined contribution retirement plan (“Qualified 401(a) and 401(k)”) Contracts, and
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•
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All Contracts issued in the states of Florida or Oregon, except Tax Sheltered Annuity (“403(b)”) Contracts.
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SPECIAL TERMS
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Account Value
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The total value of the values you have in (i) the Subaccounts; (ii) the Guaranteed Interest Option; (iii) the Account for Special DCA (applies to Accumulator® and Accumulator® EliteSM Contracts only); and (iv) the loan reserve account (applies for Rollover 403(b) Contracts only).
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Annual Ratchet
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An Annual Ratchet occurs when your benefit base under an optional benefit is increased to equal your Account Value on a Contract Date Anniversary.
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Annuitant
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The person who is the measuring life for determining the Contract Maturity Date. The Annuitant is not necessarily the Owner.
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Business Day
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Generally, any day the New York Stock Exchange (“NYSE”) is open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an earlier close of regular trading). A Business Day does not include a day on which the NYSE is closed due to emergency conditions determined by the SEC. We may also close early due to such emergency conditions.
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Cash Value
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At any time before annuity payments begin, your Contract’s Cash Value is equal to the Account Value less: (i) the total amount or a pro rata portion of the Annual Administrative Charge, as well as any optional benefit charges; (ii) any applicable Withdrawal Charges (not applicable to Accumulator® SelectSM Contracts); and (iii) the amount of any outstanding loan plus accrued interest (applicable to Rollover 403(b) Contracts only).
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Contract Date
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The effective date of an EFLIC Contract. Your Contract Date is shown in your Contract.
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Contract Date Anniversary
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The end of each 12-month period following the Contract Date. For example, if your Contract Date is May 1st, your Contract Date Anniversary is April 30th.
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Contract Year
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The 12-month period beginning on your Contract Date and each 12-month period after that date.
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Credit
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If you own an Accumulator® PlusSM Contract, we will add a Credit to your contributions. Credits may be recaptured upon annuitization and death.
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EFLIC Contract
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The Accumulator® Series variable annuity contract issued by Equitable Financial Life Insurance Company that may be exchanged for the Contract described in this Prospectus of the same contract class and with the same optional benefit riders.
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Fund
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An underlying mutual fund in which a Subaccount invests.
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Good Order
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An instruction received by us, utilizing such forms as we may require, that is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction.
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Guaranteed Interest Option
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Part of our general account that pays interest at guaranteed rates.
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Maturity Date
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Generally, the Contract Date Anniversary that follows the Annuitant’s 95th birthday.
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Owner
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The person who is the named Owner of the Contract and, if a natural person, the measuring life for determining Contract benefits. If the Owner is a non-natural person, the Annuitant is the measuring life for determining Contract benefits.
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Qualified Contract
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A Contract purchased through a tax-qualified retirement plan or program under Sections 401(a), 401(k), 403(b), 408, or 408A of the Tax Code. Contracts that are not Qualified Contracts are referred to as “Nonqualified Contracts.”
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Subaccounts
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Subaccounts of the Separate Account available for investment under the Contracts, each of which invests in a single Fund.
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Tax Code
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The Internal Revenue Code of 1986, as amended.
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Prospectus
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Contract or Supplemental Materials
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Subaccounts
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Investment Funds
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Account Value
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Annuity Account Value
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Unit
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Accumulation Unit
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Guaranteed Minimum Death Benefit (“GMDB”)
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Guaranteed death benefit
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Guaranteed Minimum Income Benefit (“GMIB”)
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Guaranteed Income Benefit
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Guaranteed Interest Option
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Guaranteed Interest Account
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KEY INFORMATION
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FEES AND EXPENSES
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Charges for Early Withdrawals |
Each class of the Contract provides for different Withdrawal Charge periods and percentages:
For additional information about charges for surrenders and early withdrawals see “Withdrawal Charge” in “CHARGES AND FEES” in the Prospectus. |
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Transaction Charges |
In addition to Withdrawal Charges, you may also be charged for other transactions (for special requests such as express mail and duplicate Contracts). For additional information about transaction charges see “Special Service Charges” in “CHARGES AND FEES” in the Prospectus. |
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FEES AND EXPENSES(continued)
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Ongoing Fees and Expenses (annual charges) |
Each class of the Contract provides for different ongoing fees and expenses. The table below describes the fees and expenses that you may pay each year under the Contract, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. |
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Annual Fee |
Minimum |
Maximum |
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Base Contract Expense (varies by Contract class)1 |
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Investment options (Fund fees and expenses)2 |
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Optional benefits available for an additional charge (for a single optional benefit, if elected)3 |
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1. 2. 3. |
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Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes no Credits, no loans, and that you do not take withdrawals from the Contract or make any other transactions, which could add Withdrawal Charges that substantially increase costs. |
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Lowest Annual Cost $ |
Highest Annual Cost $ |
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Assumes:
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Assumes:
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For additional information about ongoing fees and expenses see “FEES AND EXPENSES TABLES” and “CHARGES AND FEES” in the Prospectus. |
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RISKS
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Risk of Loss
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The Contract is subject to the risk of loss. You could lose some or all of your Account Value. For additional information about the risk of loss see “PRINCIPAL RISKS OF INVESTING IN THE CONTRACT” in the Prospectus. |
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Not a Short-Term Investment
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The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash because the Contract is designed to provide for the accumulation of retirement savings and income on a long-term basis. As such, you should not use the Contract as a short-term investment or savings vehicle. A Withdrawal Charge may apply in certain circumstances and any withdrawals may also be subject to federal and state income taxes and tax penalties. For additional information about the investment profile of the Contract, see “PRINCIPAL RISKS OF INVESTING IN THE CONTRACT” in the Prospectus |
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Risks Associated with Investment Options
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An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., the Funds). Each investment option, including the Guaranteed Interest Option, has its own unique risks. You should review the investment options available under the Contract, including the Fund prospectuses, before making an investment decision. For additional information about the risks associated with the investment options available under the Contract, see “PRINCIPAL RISKS OF INVESTING IN THE CONTRACT,” “The Guaranteed Interest Option” in “AVAILABLE INVESTMENT OPTIONS” and “APPENDIX A – FUNDS AVAILABLE UNDER THE CONTRACT” in the Prospectus. |
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Insurance Company Risks
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An investment in the Contract is subject to risks related to the Company. The Company is solely responsible to the Contract Owner for the Contract’s Account Value and the guaranteed benefits. The general obligations, including the Guaranteed Interest Option and any guaranteed benefits under the Contract are supported by our general account and are subject to our claims paying ability. A Contract Owner should look solely to our financial strength for our claims-paying ability. More information about the Company, including our financial strength ratings, is available upon request by writing to Customer Service at P.O. Box 9271, Des Moines, Iowa 50306-9271 or calling 1-800-366-0066. For additional information about insurance company risks see “About Our General Account” in “OTHER INFORMATION” in the Prospectus. |
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RESTRICTIONS
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Investments
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We may, at any time, exercise our rights to limit or terminate your contributions, allocations, and transfers to any of the Subaccounts and to limit the number of Subaccounts which you may select. Such rights include, among others, combining any two or more Subaccounts, substituting Funds and transferring Account Value from any Subaccount to another Subaccount. For more information see “Addition, Deletion or Substitution of Subaccounts and Other Changes” in “VENERABLE INSURANCE AND ANNUITY COMPANY AND ITS SEPARATE ACCOUNT EQ” in the Prospectus. Credits under Accumulator® PlusSM Contracts may be recaptured upon annuitization and death. There are limits on contributions and transfers into and out of the Guaranteed Interest Option and restrictions or limitations with the dollar cost averaging programs. See “OVERVIEW OF THE CONTRACT”, and “TRANSFERS AMONG YOUR INVESTMENT OPTIONS” in the Prospectus for more information. For more information see “Separate Account EQ” in “VENERABLE INSURANCE AND ANNUITY COMPANY AND ITS SEPARATE ACCOUNT EQ” in the Prospectus. For additional information about the investment options, including information regarding volatility management strategies and techniques, see “THE FUNDS” and “Available Investment Options” in “THE ANNUITY CONTRACT” in the Prospectus. |
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Optional Benefits
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At any time, we have the right to limit or terminate your contributions, allocations, and transfers to any of the Subaccounts. If you have one or more guaranteed benefits (which are also known as optional benefits) and we exercise our right to discontinue the acceptance of, and/or place additional limitations on, contributions to the Contract, you may no longer be able to fund your guaranteed benefit(s). Withdrawals may affect the availability of an optional benefit by reducing the benefit by an amount greater than the value withdrawn, and/or could terminate the benefit. Loans are permitted under Rollover 403(b) Contracts with employer or plan approval, subject to certain restrictions on loan amounts and other optional benefits. For additional information about the optional benefits see “DEATH BENEFITS”, “OPTIONAL LIVING BENEFITS”, and “OTHER BENEFITS” in the Prospectus. |
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TAXES
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Tax Implications
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You should consult with a tax professional to determine the tax implications of an investment in, and payments received under, the Contract. There is no additional tax benefit to you if the Contract was purchased through a tax-qualified plan or individual retirement account (“IRA”). Withdrawals will be subject to ordinary income tax and may be subject to tax penalties. Generally, you are not taxed until you make a withdrawal from the Contract. For additional information about tax implications see “FEDERAL TAX CONSIDERATIONS” in the Prospectus. |
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CONFLICTS OF INTEREST
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Investment Professional Compensation
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Some financial professionals may receive compensation for selling the Contract to you, both in the form of commissions or in the form of contribution-based compensation. Financial professionals may also receive additional compensation for enhanced marketing opportunities and other services (commonly referred to as “marketing allowances”). This conflict of interest may influence the financial professional to recommend this Contract over another investment. For additional information about compensation to financial professionals see “Distribution of the Contracts” in “OTHER INFORMATION” in the Prospectus. |
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Exchanges
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Some financial professionals may have a financial incentive to offer a new contract in place of the one you already own. You should only exchange your contract if you determine, after comparing the features, fees, and risks of both contracts, that it is preferable to purchase the new contract rather than continue to own your existing contract. |
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OVERVIEW OF THE CONTRACT
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•
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Subaccounts of the Separate Account, each which invests in an underlying Fund. There are restrictions depending on benefit selection;
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The Guaranteed Interest Option; and
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The Account for Special DCA (accepts only contributions, if available, and applies to Accumulator® and Accumulator® EliteSM Contracts only).
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Life;
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Life with a certain minimum number of payments; or
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Life with a certain amount of payment.
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Accumulator® has a 7 year Withdrawal Charge period and a 1.30% Base Contract Expense;
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Accumulator® Plus has an 8 year Withdrawal Charge period and a 1.55% Base Contract Expense;
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Accumulator® EliteSM has a 4 year Withdrawal Charge period and a 1.65% Base Contract Expense; and
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Accumulator® SelectSM has no Withdrawal Charge and a 1.70% Base Contract Expense.
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FEES AND EXPENSES TABLES
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Transaction Expenses
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Accumulator®
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Accumulator®
PlusSM |
Accumulator®
EliteSM |
Accumulator®
SelectSM |
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Withdrawal Charge (as a percentage of each contribution)1
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None
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Special Services Charges2
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$
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$
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$
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$
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$
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$
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$
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$
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$
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$
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$
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$
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| 1 |
| Withdrawal Charge as a % of each contribution each year following receipt of the contribution | |||||||||
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9+ |
| Accumulator® | 7% | 7% | 6% | 6% | 5% | 3% | 1% | 0% | 0% |
| Accumulator® PlusSM | 8% | 8% | 7% | 7% | 6% | 5% | 4% | 3% | 0% |
| Accumulator® EliteSM | 8% | 7% | 6% | 5% | 0% | 0% | 0% | 0% | 0% |
| See “Charges and Fees – Withdrawal Charge” for additional information. | |||||||||
| 2 |
|
Annual Contract Expenses
|
Accumulator®
|
Accumulator®
PlusSM |
Accumulator®
EliteSM |
Accumulator®
SelectSM |
|
Annual Administrative Charge1
|
$
|
$
|
$
|
$
|
|
Base Contract Expenses (a percentage of daily net assets in the Subaccounts)
|
|
|
|
|
|
Optional Benefits Expenses2
|
||||
|
GMDB charges (as a percentage of the benefit base)3
|
||||
|
Annual Ratchet to Age 85
|
|
|
|
|
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 854 (For Contracts issued on or after January 16, 2007)
|
|
|
|
|
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 854 (For Contracts issued before January 16, 2007)
|
|
|
|
|
|
GMIB charge (as a percentage of the benefit base)3
|
|
|
|
|
|
EEB charge (as a percentage of Account Value)
|
|
|
|
|
|
Net Loan Interest Charge (as a percentage of amounts held in the loan reserve account)5
|
|
|
|
|
|
Annual Fund Expenses
|
Minimum
|
Maximum
|
|
|
|
|
| * |
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
|
If you surrender or annuitize your Contract under a non-life contingent annuity payout option at the end of the applicable time period1
|
||||
|
1 year
|
3 years
|
5 years
|
10 years
|
|
|
Accumulator®
|
$
|
$
|
$
|
$
|
|
Accumulator® PlusSM
|
$
|
$
|
$
|
$
|
|
Accumulator® EliteSM
|
$
|
$
|
$
|
$
|
|
Accumulator® SelectSM
|
$
|
$
|
$
|
$
|
|
If you do not surrender or annuitize your Contract or you annuitize your Contract under a life contingent annuity payout option at the end of the applicable time period
|
||||
|
1 year
|
3 years
|
5 years
|
10 years
|
|
|
Accumulator®
|
$
|
$
|
$
|
$
|
|
Accumulator® PlusSM
|
$
|
$
|
$
|
$
|
|
Accumulator® EliteSM
|
$
|
$
|
$
|
$
|
|
Accumulator® SelectSM
|
$
|
$
|
$
|
$
|
| 1 | The first Example reflects the assessment of Withdrawal Charges (if applicable) calculated based on the time of investment in the Contract. However, the time your contributions were invested in the EFLIC Contract is taken into account for purposes of determining whether a Withdrawal Charge applies to those contributions under the Contract. If you elect to exchange your EFLIC Contract for the Contract, and at the time of the exchange no Withdrawal Charges applied to the contributions under your EFLIC Contract, no Withdrawal Charges would apply to those contributions under the Contract. |
|
PRINCIPAL RISKS OF INVESTING IN THE CONTRACT
|
|
•
|
|
|
•
|
|
|
•
|
|
|
•
|
|
|
•
|
|
|
•
|
|
|
•
|
|
|
•
|
|
|
•
|
|
|
VENERABLE INSURANCE AND ANNUITY COMPANY AND ITS SEPARATE ACCOUNT EQ
|
|
•
|
On a day that is not a Business Day or
|
|
•
|
After the close of a Business Day, then, in each case, we are deemed to have received that item on the next Business Day.
|
|
•
|
Written confirmation of financial transactions and certain non-financial transactions, including termination of a systematic withdrawal option;
|
|
•
|
Statements of your Account Value at the close of each calendar year, and any calendar quarter in which there was a financial transaction; and
|
|
•
|
Annual statements of your Account Value as of the close of the Contract Year, including notification of eligibility to exercise the GMIB and GMDB Roll-up Benefit Reset option.
|
|
•
|
Account summary. View your Account Values, and select accounts for additional details;
|
|
•
|
Messages and alerts. Stay up to date with messages on statement availability, investment options and important account information;
|
|
•
|
Profile changes. Now it’s even easier to keep your information current, such as your email address, street address and eDelivery preferences;
|
|
•
|
Manage your account. Convenient access to service options for your Contract, from viewing account details and documents to completing financial transactions; and
|
|
•
|
Investments details. Intuitive charts show the breakdown of your key investments.
|
|
•
|
Deregister Separate Account EQ under the 1940 Act;
|
|
•
|
Operate Separate Account EQ as a management company under the 1940 Act if it is operating as a unit investment trust;
|
|
•
|
Operate Separate Account EQ as a unit investment trust under the 1940 Act if it is operating as a managed separate account;
|
|
•
|
Restrict or eliminate any voting rights as to Separate Account EQ;
|
|
•
|
Combine Separate Account EQ with other separate accounts; and
|
|
•
|
Transfer separate account assets to another separate account that we determine to be associated with the class of Contracts to which the Contract belongs.
|
|
THE FUNDS
|
|
•
|
A share of the management fee or payment of other amounts (sometimes referred to as revenue sharing);
|
|
•
|
For certain share classes, 12b-1 fees; and
|
|
•
|
Service fees.
|
|
•
|
Communicating with customers about their Fund holdings;
|
|
•
|
Maintaining customer financial records;
|
|
•
|
Processing changes in customer accounts and trade orders (e.g., purchase and redemption requests);
|
|
•
|
Recordkeeping for customers, including subaccounting services;
|
|
•
|
Answering customer inquiries about account status and purchase and redemption procedures;
|
|
•
|
Providing account balances, account statements, tax documents and confirmations of transactions in a customer’s account;
|
|
•
|
Transmitting proxy statements, annual and semi-annual reports, Fund prospectuses and other Fund communications to customers; and
|
|
•
|
Receiving, tabulating, and transmitting proxies executed by customers.
|
|
CHARGES AND FEES
|
|
•
|
A Mortality and Expense Risk Charge;
|
|
•
|
An asset-based Administrative Charge; and
|
|
•
|
A Distribution Charge.
|
|
•
|
On each Contract Date Anniversary — an Annual Administrative Charge, if applicable;
|
|
•
|
At the time you make certain withdrawals, surrender your Contract, or annuitize to a non-life contingent annuity payout option — a Withdrawal Charge (not applicable to Accumulator® SelectSM Contracts);
|
|
•
|
On each Contract Date Anniversary — a charge for each optional benefit in effect under your Contract: such as a GMDB; the GMIB; and the EEB; and
|
|
•
|
At the time annuity payments are to begin — charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state.
|
|
Accumulator®:
|
0.80%
|
|
Accumulator® PlusSM:
|
0.95%
|
|
Accumulator® EliteSM:
|
1.10%
|
|
Accumulator® SelectSM:
|
1.10%
|
|
Accumulator®:
|
0.30%
|
|
Accumulator® PlusSM:
|
0.35%
|
|
Accumulator® EliteSM:
|
0.30%
|
|
Accumulator® SelectSM:
|
0.25%
|
|
Accumulator®:
|
0.20%
|
|
Accumulator® PlusSM:
|
0.25%
|
|
Accumulator® EliteSM:
|
0.25%
|
|
Accumulator® SelectSM:
|
0.35%
|
|
•
|
Express mail charge. We charge up to $90 for sending you a check by express mail delivery. This charge is currently $20. This charge will be deducted from the amount you request;
|
|
•
|
Wire Transfer Charge. We charge up to $35 for outgoing wire transfers. This charge is currently waived. We may discontinue this waiver at any time, with or without notice. If assessed, this charge will be deducted from the amount you request; and
|
|
•
|
Duplicate Contract charge. We charge up to $35 for providing a copy of your Contract. This charge is currently waived. We may discontinue this waiver at any time, with or without notice.
|
|
•
|
You make one or more withdrawals during a Contract Year that, in total, exceed the 10% free withdrawal amount, described below;
|
|
•
|
You surrender your Contract to receive its Cash Value; or
|
|
•
|
You annuitize your Contract and elect a non-life contingent annuity option.
|
|
Withdrawal Charge as a % of each contribution each year following receipt of the contribution
|
|||||||||
|
Contract Year
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
|
Accumulator®
|
7%
|
7%
|
6%
|
6%
|
5%
|
3%
|
1%
|
0%*
|
—
|
|
Accumulator® PlusSM
|
8%
|
8%
|
7%
|
7%
|
6%
|
5%
|
4%
|
3%
|
0%**
|
|
Accumulator® EliteSM
|
8%
|
7%
|
6%
|
5%
|
0%***
|
—
|
—
|
—
|
—
|
| * | Charge does not apply in the 8th and subsequent years following contribution. |
| ** | Charge does not apply in the 9th and subsequent years following contribution. |
| *** | Charge does not apply in the 5th and subsequent years following contribution. |
|
•
|
The current Account Value less contributions that have not been withdrawn (earnings in the Contract); and
|
|
•
|
The 10% free withdrawal amount defined above.
|
|
•
|
An Owner (or older joint Owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration;
|
|
•
|
We receive proof satisfactory to us (including certification by a licensed physician) that an Owner’s (or older joint Owner’s, if applicable) life expectancy is six months or less; or
|
|
•
|
An Owner (or older joint Owner, if applicable) has been confined to a nursing home for more than 90 days (or such other period, as required in your state) as verified by a licensed physician. A nursing home for this purpose means one that is (a) approved by Medicare as a provider of skilled nursing care service, or (b) licensed as a skilled nursing home by the state or territory in which it is located (it must be within the United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the following:
|
|
○
|
Its main function is to provide skilled, intermediate, or custodial nursing care;
|
|
○
|
It provides continuous room and board to three or more persons;
|
|
○
|
It is supervised by a registered nurse or licensed practical nurse;
|
|
○
|
It keeps daily medical records of each patient;
|
|
○
|
It controls and records all medications dispensed; and
|
|
○
|
Its primary service is other than to provide housing for residents.
|
|
•
|
Annual Ratchet to Age 85. If you elected the Annual Ratchet to Age 85 enhanced death benefit, we deduct a charge annually from your Account Value on each Contract Date Anniversary for which the benefit is in effect. The charge is equal to 0.25% of the Annual Ratchet to Age 85 benefit base. The benefit base is equal to the amount of the Annual Ratchet to Age 85 Death Benefit. Although this enhanced death benefit will no longer increase after age 85, we will continue to deduct this charge as long as your enhanced death benefit is in effect. See “Annual Ratchet to Age 85 Death Benefit (“Annual Ratchet DB”)” in “DEATH BENEFITS.”
|
|
•
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85. If you elected this enhanced death benefit, we deduct a charge annually from your Account Value on each Contract Date Anniversary for which the benefit is in effect.
|
|
○
|
For EFLIC Contracts issued on or after January 16, 2007, the current charge is equal to 0.65% of the Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 benefit base.
|
|
○
|
For EFLIC Contracts issued before January 16, 2007, the current charge is equal to 0.60% of the Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 benefit base.
|
|
This charge may also be lower based on the state where you purchased your EFLIC Contract. Please see “APPENDIX E - STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS” and “APPENDIX F – CONTRACT VARIATIONS” for more information on the GMDB charge applicable to your Contract. The benefit base is equal to the amount of the Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 Death Benefit. Although this enhanced death benefit will no longer increase after age 85, we will continue to deduct this charge as long as your enhanced death benefit is in effect. See “Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 Enhanced Death Benefit.” in “DEATH BENEFITS.”
|
|
If you opt to reset the Roll-up Benefit Base, the charge for this enhanced death benefit does not change.
|
|
•
|
EEB. If you elected the EEB, we deduct a charge annually from your Account Value on each Contract Date Anniversary for which it is in effect. The charge is equal to 0.35% of the Account Value on each Contract Date Anniversary. We will deduct this charge from your value in the Subaccounts and the Guaranteed Interest Option on a pro rata basis. If those amounts are insufficient, we will deduct any additional amount required to cover the full amount of the charge from the Account for Special DCA (for Accumulator® and Accumulator® EliteSM Contracts only).
|
|
If the Contract is surrendered or annuitized or a death benefit is paid on a date other than a Contract Date Anniversary, we will deduct a pro rata portion of the charge for that year. Although the value of your EEB will no longer increase after age 80, we will continue to deduct the charge for this benefit as long as it remains in effect.
|
|
•
|
A lower Withdrawal Charge (if applicable under your Contract) or Mortality and Expense Risks Charge;
|
|
•
|
Different GMIB or GMDB terms;
|
|
•
|
Access to Subaccounts that invest in Fund shares that are not subject to 12b-1 fees; or
|
|
•
|
Different Credit percentages that apply to contributions under Accumulator® PlusSM Contracts.
|
|
•
|
Management fees;
|
|
•
|
12b-1 fees;
|
|
•
|
Operating expenses, such as trustees’ fees, independent public accounting firms’ fees, legal counsel fees, administrative service fees, custodian fees, and the cost of liability insurance; and
|
|
•
|
Investment-related expenses, such as brokerage commissions.
|
|
THE ANNUITY CONTRACT
|
|
•
|
In accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period;
|
|
•
|
We will not apply the predetermined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law; and
|
|
•
|
A beneficiary or a successor Owner who continues the Contract under one of the available continuation options will have the right to change your annuity payout election.
|
|
•
|
Qualified 401(a) and 401(k) Contracts; and
|
|
•
|
All Contracts issued in the states of Florida or Oregon, except Tax Sheltered Annuity (403(b)) Contracts.
|
|
•
|
The aggregate contributions under one or more Contracts with the same Contract Owner or Annuitant would then total more than $1,500,000 ($500,000 for the same Contract Owner or Annuitant who is age 81 and older at Contract issue); or
|
|
•
|
The aggregate contributions under all our annuity contracts with the same Contract Owner or Annuitant would then total more than $2,500,000.
|
|
First EFLIC Contract Year Total Contribution Breakpoints
|
Credit Percentage Applied to Contributions
|
|
Less than $500,000
|
4%
|
|
$500,000-$999,999.99
|
4.5%
|
|
$1 million or more
|
5%
|
|
•
|
Indication of intent: If you indicated in the application at the time you purchased your EFLIC Contract an intention to make additional contributions to meet one of the breakpoints (the “Expected First Year EFLIC Contract Contribution Amount”) and your initial contribution was at least 50% of the Expected First Year EFLIC Contract Contribution Amount, your Credit percentage was as follows:
|
|
○
|
For any contributions resulting in total contributions to date less than or equal to your Expected First Year EFLIC Contract Contribution Amount, the Credit percentage was the percentage that applied to the Expected First Year EFLIC Contract Contribution Amount based on the table above;
|
|
○
|
For any additional contribution that resulted in your total contributions exceeding your Expected First Year EFLIC Contract Contribution Amount, such that the Credit percentage should have been higher, the Credit percentage applied to that contribution was increased, as well as any prior or additional contributions made in the first Contract Year, accordingly; and
|
|
○
|
If at the end of the first EFLIC Contract Year your total contributions were lower than your Expected First Year EFLIC Contract Contribution Amount such that the Credit applied should have been lower, any excess Credit was recovered. The excess Credit is equal to the difference between the Credit that was actually applied based on your Expected First Year EFLIC Contract Contribution Amount (as applicable) and the Credit that should have been applied based on first year total contributions.
|
|
•
|
If there was no indication at the time you purchased your EFLIC Contract of an intent to make additional contributions in the first year:
|
|
○
|
For your initial contribution (if available in your state) the Credit percentage based upon the above table was applied; and
|
|
○
|
For any additional contribution that resulted in a higher applicable Credit percentage (based on total contributions to date), the Credit percentage applied to that contribution was increased, as well as any prior or additional contributions made in the first Contract Year, accordingly.
|
|
•
|
If you start receiving annuity payments within three years of making any contribution, the Credit that applies to any contribution made within the prior three years is recovered. Please see “APPENDIX E – STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS” for information on state variations; and
|
|
•
|
If the Owner (or older joint Owner, if applicable) dies during the one-year period following our receipt of a contribution to which a Credit was applied, the amount of such Credit is recovered. For joint life Contracts, the Credit is only recovered if the second Owner dies within the one-year period following a contribution.
|
|
•
|
Credits may be recaptured upon annuitization and death as described above. Because the exact dollar amount of the Credits is recaptured in these circumstances, you will retain any gains or losses attributable to the investment experience of the recaptured Credits while they were allocated to your Contract;
|
|
•
|
Withdrawals taken during the first EFLIC Contract may limit Credits for additional contributions;
|
|
•
|
We may limit or stop accepting contributions, which means that you may no longer receive additional Credits but you will still be subject to the higher fees and charges for the Accumulator® PlusSM Contract; and
|
|
•
|
We do not include Credits in calculating any of your benefit bases under the Contract, except to the extent that any benefit base increases as the result of an increase in your Account Value, which does include Credits.
|
|
•
|
The Subaccounts;
|
|
•
|
The Guaranteed Interest Option;
|
|
•
|
The Account for Special DCA (applies to Accumulator® and Accumulator® EliteSM Contracts only); and
|
|
•
|
The loan reserve account (applies to Rollover 403(b) Contracts only).
|
|
•
|
The total amount or a pro rata portion of the Annual Administrative Charge, as well as any optional benefit charges;
|
|
•
|
Any applicable Withdrawal Charges (not applicable to Accumulator® SelectSM Contracts); and
|
|
•
|
The amount of any outstanding loan plus accrued interest (applicable to Rollover 403(b) Contracts only).
|
|
•
|
Mortality and expense risks:
|
|
•
|
Administrative expenses; and
|
|
•
|
Distribution charges.
|
|
•
|
Increased to reflect additional contributions (plus the Credit for Accumulator® PlusSM Contracts);
|
|
•
|
Decreased to reflect a withdrawal (plus Withdrawal Charges if applicable under your Contract);
|
|
•
|
Increased to reflect a transfer into, or decreased to reflect a transfer out of, a Subaccount; or
|
|
•
|
Increased or decreased to reflect a transfer of your loan amount from or to the loan reserve account under a Rollover 403(b) Contract.
|
|
•
|
The Unit value for the preceding valuation period, multiplied by
|
|
•
|
The net investment factor for that Subaccount for that valuation period (a valuation period is each Business Day together with any preceding non-Business Days).
|
| (1) | We take the net asset value of the Subaccount at the end of each Business Day; |
| (2) | We add to (1) the amount of any dividend or capital gains distribution declared for the Subaccount and reinvested in such Subaccount. We subtract from that amount a charge for our taxes, if any; |
| (3) | We divide (2) by the net asset value of the Subaccount at the end of the preceding Business Day; and |
| (4) | We then subtract the applicable daily charges from the Subaccount: the Base Contract Expense. |
|
•
|
You surrender your Contract. See “Surrendering Your Contract to Receive its Cash Value” in “WITHDRAWALS” for more information;
|
|
•
|
You annuitize your Contract. See “Fixed Annuity Payout Options” in “ANNUITY OPTIONS” for more information;
|
|
•
|
Your Contract reaches its Maturity Date, which will never be later than the Contract Date Anniversary following your 95th birthday, at which time the Contract must be annuitized or paid out in a lump sum. See “Annuity Maturity Date” in “ANNUITY OPTIONS”; and
|
|
•
|
Your Account Value is insufficient to pay any applicable charges when due. See “Effect of Your Account Value Falling to Zero” in “THE ANNUITY CONTRACT” section of this Prospectus for more information.
|
|
•
|
Subaccounts of the Separate Account;
|
|
•
|
The Guaranteed Interest Option; and
|
|
•
|
The Account for Special DCA (accepts only contributions, if available, and applies to Accumulator® and Accumulator® EliteSM Contracts only).
|
|
TRANSFERS AMONG YOUR INVESTMENT OPTIONS
|
|
•
|
You may not transfer any amount to the Account for Special DCA (for Accumulator® and Accumulator® EliteSM Contracts only); and
|
|
•
|
For Accumulator® PlusSM, Accumulator® EliteSM and Accumulator® SelectSM Contracts, a transfer into the Guaranteed Interest Option will not be permitted if such transfer would result in more than 25% of the Account Value being allocated to the Guaranteed Interest Option, based on the Account Value as of the previous Business Day.
|
|
•
|
25% of the amount you have in the Guaranteed Interest Option on the last day of the prior Contract Year;
|
|
•
|
The total of all amounts transferred at your request from the Guaranteed Interest Option to any of the investment options in the prior Contract Year; or
|
|
•
|
25% of amounts transferred or allocated to the Guaranteed Interest Option during the current Contract Year.
|
|
•
|
Increased trading and transaction costs;
|
|
•
|
Forced and unplanned portfolio turnover;
|
|
•
|
Lost opportunity costs; and
|
|
•
|
Large asset swings that decrease the Fund’s ability to provide maximum investment return to all Contract Owners.
|
|
•
|
We suspend the Electronic Trading Privileges, as defined below, of any individual or organization if we determine, in our sole discretion, that the individual’s or organization’s transfer activity is disruptive or not in the best interest of other owners of our variable insurance and retirement products; and
|
|
•
|
Each underlying Fund may limit or restrict Fund purchases and we will implement any limitation or restriction on transfers to an underlying Fund as directed by that underlying Fund.
|
|
•
|
Meets or exceeds our current definition of Excessive Trading, as defined below; or
|
|
•
|
Is determined, in our sole discretion, to be disruptive or not in the best interests of other owners of our variable insurance and retirement products.
|
|
•
|
More than one purchase and sale of the same Fund (including money market Funds) within a 60 calendar day period (hereinafter, a purchase and sale of the same Fund is referred to as a “round-trip”). This means two or more round-trips involving the same Fund within a 60 calendar day period would meet our definition of Excessive Trading; or
|
|
•
|
Six round-trips involving the same Fund within a twelve month period.
|
|
•
|
Purchases or sales of shares related to non-Fund transfers (for example, new contributions, withdrawals and loans, if available);
|
|
•
|
Transfers associated with any scheduled dollar cost averaging, scheduled rebalancing or scheduled asset allocation programs;
|
|
•
|
Purchases and sales of Fund shares in the amount of $5,000 or less;
|
|
•
|
Purchases and sales of Funds that affirmatively permit short-term trading in their Fund shares, and movement between such Funds and a money market Fund; and
|
|
•
|
Transactions initiated by us or a Fund.
|
|
•
|
If your Account Value is $30,000 and has always been invested in a Higher Roll-up Rate Option, and your benefit base is $40,000 and is all rolling up at 6%, and you transfer 50% of your Account Value ($15,000) to the EQ/Money Market Subaccount (a Lower Roll-up Rate Option), then we will transfer 50% of your benefit base ($20,000) from the 6% Roll-up rate benefit base segment to the 3% Roll-up rate benefit base segment. Therefore, immediately after the transfer $20,000 will roll-up at 6% and $20,000 will roll-up at 3%. In this example, the amount of your benefit base rolling up at 3% is more than the dollar amount of your transfer to a Lower Roll-up Rate Option; and
|
|
•
|
If your Account Value is $40,000 and has always been invested in a Lower Roll-up Rate Option, and your benefit base is $30,000 and is all rolling up at 3%, and you transfer 50% of your Account Value ($20,000) to a Higher Roll-up Rate Option, then we will transfer 50% of your benefit base ($15,000) from the 3% Roll-up rate benefit base segment to the 6% Roll-up rate benefit base segment. Therefore, immediately after the transfer $15,000 will roll-up at 6% and $15,000 will roll-up at 3%. In this example, the amount of your benefit base rolling up at 6% is less than the dollar amount of your transfer to a Higher Roll-up Rate Option.
|
|
WITHDRAWALS
|
|
Contract Type
|
Partial
|
Systematic
|
Pre-age 59½
Substantially Equal |
Lifetime Required
Minimum Distribution |
|
Nonqualified
|
Yes
|
Yes
|
No
|
No
|
|
Rollover IRA
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Flexible Premium IRA
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Roth Conversion IRA
|
Yes
|
Yes
|
Yes
|
No
|
|
Flexible Premium Roth IRA
|
Yes
|
Yes
|
Yes
|
No
|
|
Inherited IRA
|
Yes
|
No
|
No
|
*
|
|
Qualified**
|
Yes
|
No
|
No
|
No
|
|
Rollover 403(b)***
|
Yes
|
Yes
|
No
|
Yes
|
| * | The Contract pays out post-death required minimum distributions. See “Beneficiary Continuation Option (“BCO”)” in “DEATH BENEFITS.” |
| ** | All payments are made to the plan trust as the Owner of the Contract. |
| *** | Employer or plan approval required for all transactions. Your ability to take withdrawals or loans from, or surrender your 403(b) Contract may be limited. |
|
•
|
Systematic Withdrawals: Withdrawals of a specified dollar amount or percentage of your Account Value on a monthly, quarterly or annual basis.
|
|
•
|
Substantially Equal Withdrawals (before age 59½): Distributions of your Account Value calculated using one of the IRS-approved methods to avoid triggering the 10% additional federal income tax that would normally apply to distributions made before age 59½ under federal income tax rules.
|
|
•
|
Lifetime Required Minimum Distribution Withdrawals: Distributions of your Account Value calculated to help you meet lifetime required minimum distributions under federal income tax rules.
|
|
•
|
Dollar-for-Dollar Withdrawal Service: You may elect to have withdrawals from your Account Value calculated to preserve the benefit base of your guaranteed benefits by either (i) preserving the Roll-up Benefit Base or (ii) avoiding a pro-rata reduction of the guaranteed benefit base.
|
|
•
|
You can no longer take withdrawals and preserve the benefit base;
|
|
•
|
You should stop taking withdrawals if you wish to maintain the value of the benefit;
|
|
•
|
If you want to continue taking withdrawals, you can ensure that those withdrawals will reduce your benefit base on a dollar-for-dollar basis rather than pro rata basis by enrolling in the full dollar-for-dollar withdrawal service. Please note, however, that even dollar-for-dollar withdrawals can significantly reduce your Roll-up Benefit Base. See “Dollar-for-Dollar Withdrawal Service” in “OTHER BENEFITS”; and
|
|
•
|
The maximum amount you are able to withdraw each year without triggering a pro rata reduction in your benefit base will decrease. If you do not enroll in the full dollar-for-dollar withdrawal service and want to ensure that your withdrawals reduce your benefit base on a dollar-for-dollar basis, you should make sure that the sum of your withdrawals in a Contract Year is equal to or less than the value of the applicable Roll-up rate times your benefit base on your most recent Contract Date Anniversary.
|
|
•
|
The New York Stock Exchange is closed or restricts trading;
|
|
•
|
The SEC determines that an emergency exists as a result of which sales of securities or determination of the fair value of a Subaccount’s assets is not reasonably practicable; or
|
|
•
|
The SEC, by order, permits us to defer payment to protect people remaining in the Subaccounts.
|
|
•
|
Disbursements, including but not limited to partial withdrawals, surrenders, transfers and exchanges, over $250,000;
|
|
•
|
Any disbursement requested within 30 days of an address change;
|
|
•
|
Any disbursement when we do not have an originating or guaranteed signature on file or where we question a signature or perceive any inconsistency between the signature on file and the signature on the request; or
|
|
•
|
Any other transaction we require.
|
|
ANNUITY OPTIONS
|
|
•
|
Life Only Annuity
|
|
•
|
Life Annuity with Period Certain
|
|
•
|
Life Annuity with Refund Certain
|
|
BENEFITS AVAILABLE UNDER THE CONTRACTS
|
|
Name of Benefit
|
Purpose
|
Standard/Optional
|
Annual Fee
|
Brief Description of
Restrictions/Limitations |
|
|
Max
|
Current
|
||||
|
|
|
|
No Additional Charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Benefit
|
Purpose
|
Standard/Optional
|
Annual Fee
|
Brief Description of
Restrictions/Limitations |
|
|
Max
|
Current
|
||||
|
|
|
|
|
|
|
|
|
|
|
No Additional Charge
|
|
|
|
Name of Benefit
|
Purpose
|
Standard/Optional
|
Annual Fee
|
Brief Description of
Restrictions/Limitations |
|
|
Max
|
Current
|
||||
|
|
|
|
of the benefit base |
|
|
|
Name of Benefit
|
Purpose
|
Standard/Optional
|
Annual Fee
|
Brief Description of
Restrictions/Limitations |
|
|
Max
|
Current
|
||||
|
|
|
|
No
Charge |
|
|
|
(Option 1 allows rebalancing among the Subaccounts; Option 2 allows rebalancing among the Subaccounts and the Guaranteed Interest Option) |
|
|
No
Charge |
|
|
|
(Systematic Withdrawals, Substantially Equal Withdrawals, Lifetime Required Minimum Distribution (“RMD”) Withdrawals, and Dollar for Dollar Withdrawals) |
|
|
No
Charge |
|
|
|
|
|
|
|
|
|
| * | The interest charge is the difference between the rate of interest we charge you for a loan and the rate of interest we credit the amount in your loan reserve account. In no event will the net loan interest charge exceed 2.00%. |
|
DEATH BENEFITS
|
|
•
|
Annual Ratchet to Age 85 Death Benefit;
|
|
•
|
Greater of 6% Roll-up to Age 85 or the Annual Ratchet to Age 85 Death Benefit; and
|
|
•
|
Earnings Enhancement Benefit.
|
|
•
|
Your total contributions, adjusted for any withdrawals (and any associated Withdrawal Charges, if applicable under your Contract).
|
|
•
|
Your Account Value as of the date we receive satisfactory proof of death, any required instructions for the method of payment, and information and forms necessary to effect payment; and
|
|
•
|
Your elected enhanced death benefit on the date of the Owner’s (or older joint Owner’s, if applicable) death, adjusted for any subsequent withdrawals (and associated Withdrawal Charges, if applicable under your Contract).
|
|
•
|
Your total contributions; and
|
|
•
|
Your highest Account Value on any Contract Date Anniversary up to the Contract Date Anniversary following the Owner’s (or older joint Owner’s, if applicable) 85th birthday (plus any contributions made since the most recent Annual Ratchet).
|
|
•
|
Your enhanced death benefit immediately following the most recent withdrawal (which will reflect the deduction of the withdrawal and by any associated Withdrawal Charges, if applicable under your Contract) plus any additional contributions made after the date of such withdrawal; and
|
|
•
|
Your highest Account Value on any Contract Date Anniversary after the date of the most recent withdrawal, up to the Contract Date Anniversary following the Owner’s (or older joint Owner’s, if applicable) 85th birthday (plus any contributions made since the most recent Annual Ratchet after the date of such withdrawal).
|
|
•
|
The Annual Ratchet DB, calculated as described above, and
|
|
•
|
The 6% Roll-up to Age 85 Death Benefit (the “GMDB Roll-up Benefit Base”), which is equal to:
|
|
○
|
Your total contributions; plus
|
|
○
|
A daily roll-up at an effective annual rate described below; less
|
|
○
|
A deduction that reflects any withdrawals you make (including any applicable Withdrawal Charges).
|
|
•
|
6% with respect to the Subaccounts (including amounts allocated to the Account for Special DCA under Accumulator® and Accumulator® EliteSM Contracts but excluding all other amounts allocated to the EQ/Money Market and EQ/Intermediate Government Bond Subaccounts). We refer to these as the “Higher Roll-up Rate Options;” and
|
|
•
|
3% with respect to the EQ/Money Market and EQ/Intermediate Government Bond Subaccounts, the Guaranteed Interest Option, and the loan reserve account under Rollover 403(b) Contracts (if applicable). We refer to these as the “Lower Roll-up Rate Options.” An allocation to any investment option that rolls up at 3% will effectively reduce the growth rate of your benefit base. For more information, see “Calculating Your Roll-up Benefit Base Following a Transfer” in “TRANSFERS AMONG YOUR INVESTMENT OPTIONS.”
|
|
•
|
One-time reset option — resets your Roll-up Benefit Base on a single Contract Date Anniversary;
|
|
•
|
Automatic annual reset program — automatically resets your Roll-up Benefit Base on each Contract Date Anniversary you are eligible for a reset; and
|
|
•
|
Automatic customized reset program — automatically resets your Roll-up Benefit Base on each Contract Date Anniversary, if eligible, for the period you designate.
|
|
•
|
If your request is received within 30 days following your Contract Date Anniversary, your Roll-up Benefit Base will be reset, if eligible, as of that Contract Date Anniversary. If your Roll-up Benefit Base was not eligible for a reset on that Contract Date Anniversary, your one-time reset request will be terminated; and
|
|
•
|
If your request is received outside the 30 day period following your Contract Date Anniversary, your Roll-up Benefit Base will be reset, if eligible, on the next Contract Date Anniversary. If your Roll-up Benefit Base is not eligible for a reset, your one-time reset request will be terminated.
|
|
•
|
The Account Value; or
|
|
•
|
Any applicable death benefit;
|
|
•
|
Total net contributions.
|
|
•
|
The greater of the Account Value and the death benefit (i.e., the greater of the Account Value as of the date we receive satisfactory proof of death or any applicable GMDB as of the date of death) immediately prior to the withdrawal; minus
|
|
•
|
The net contributions as adjusted by any prior withdrawals (for Accumulator® PlusSM Contracts, Credit amounts are not included in “net contributions”)
|
|
•
|
The Account Value; or
|
|
•
|
Any applicable death benefit;
|
|
•
|
Total net contributions.
|
|
•
|
In accordance with current federal income tax rules, we apply a predetermined death benefit annuity payout election only if payment of the death benefit amount begins within one year following the date of death, which payment may not occur if the beneficiary has failed to provide all required information before the end of that period;
|
|
•
|
We will not apply the pre-determined death benefit payout election if doing so would violate any federal income tax rules or any other applicable law, and
|
|
•
|
A beneficiary or a successor Owner who continues the Contract under one of the continuation options described below will have the right to change your annuity payout election.
|
|
•
|
Take the death benefit proceeds in a lump sum;
|
|
•
|
Continue the Contract as a successor Owner under spousal continuation (if your spouse is the sole primary beneficiary) or under our BCO; or
|
|
•
|
Roll the death benefit proceeds over into another Contract.
|
|
•
|
Take a lump sum payment;
|
|
•
|
Annuitize within one year;
|
|
•
|
Continue the Contract for up to five years; or
|
|
•
|
Continue the Contract under the BCO.
|
|
•
|
Take a lump sum payment;
|
|
•
|
Annuitize within one year;
|
|
•
|
Continue the Contract for up to five years; or
|
|
•
|
Continue the Contract under the BCO.
|
|
•
|
As of the date we receive satisfactory proof of your death, any required instructions, information and forms necessary, we will increase the Account Value to equal the elected GMDB as of the date of your death if such death benefit is greater than such Account Value, plus any amount applicable under the EEB, and adjusted for any subsequent withdrawals. For Accumulator® PlusSM Contracts, if any contributions are made during the one-year period prior to the Owner’s death, the Account Value will first be reduced by any Credits applied to any such contributions. The increase in the Account Value will be allocated to the investment options according to the allocation percentages we have on file for your Contract;
|
|
•
|
In general, Withdrawal Charges will no longer apply to contributions made before the Owner’s death. Withdrawal Charges will apply if additional contributions are made. Please note that Withdrawal Charges do not apply to Accumulator® SelectSM Contracts;
|
|
•
|
The applicable GMDB option may continue as follows:
|
|
○
|
If the surviving spouse is age 75 or younger on the date of your death, and you were age 84 or younger at death, the GMDB you elected continues and will continue to grow according to its terms until the Contract Date Anniversary following the date the surviving spouse reaches age 85. The charge for the applicable GMDB will continue to apply, even after the GMDB no longer rolls up or is no longer eligible for resets;
|
|
○
|
If the surviving spouse is age 75 or younger on the date of your death, and you were age 85 or older at death, we will reinstate the GMDB you elected. The benefit (which had previously been frozen at age 85) will now continue to grow according to its terms until the Contract Date Anniversary following the date the surviving spouse reaches age 85. The charge for the applicable GMDB will continue to apply, even after the GMDB no longer rolls up or is no longer eligible for resets;
|
|
○
|
If the GMDB continues, the GMDB/GMIB Roll-up Benefit Base reset, if applicable, will be based on the surviving spouse’s age at the time of your death. The next available reset will be based on the Contract issue date or last reset, as applicable; and
|
|
○
|
If the surviving spouse is age 76 or over on the date of your death, the GMDB will be frozen, which means:
|
|
■
|
On the date your spouse elects to continue the Contract, the value of the GMDB benefit base will be set to equal the amount of the GMDB benefit base on the date of your death. If your Account Value is higher than the GMDB benefit base on the date of your death, the GMDB benefit base will not be increased to equal your Account Value;
|
|
■
|
The GMDB will no longer be eligible to increase, and will be subject to pro rata reduction for any subsequent withdrawals;
|
|
■
|
The charge for the GMDB will be discontinued; and
|
|
■
|
Upon the death of your spouse, the beneficiary will receive, as of the date of death, the greater of the Account Value and the value of the GMDB;
|
|
○
|
In all cases, whether the GMDB continues or is discontinued, if your Account Value is lower than the GMDB benefit base on the date of your death, your Account Value will be increased to equal the GMDB benefit base.
|
|
•
|
The EEB will be based on the surviving spouse’s age at the date of the deceased spouse’s death for the remainder of the life of the Contract. If the benefit had been previously frozen because the older spouse had attained age 80, it will be reinstated if the surviving spouse is age 75 or younger. The benefit is then frozen on the Contract Date Anniversary after the surviving spouse reaches age 80. If the surviving spouse is age 76 or older, the benefit and charge will be discontinued;
|
|
•
|
The GMIB may continue if the benefit had not already terminated and the benefit will be based on the surviving spouse’s age at the date of the deceased spouse’s death. See “Guaranteed Minimum Income Benefit (“GMIB”)” in “OPTIONAL LIVING BENEFITS.” If the GMIB continues, the charge for the GMIB will continue to apply; and
|
|
•
|
If the deceased spouse was the Annuitant, the surviving spouse becomes the Annuitant.
|
|
•
|
The GMDB, the EEB and the GMIB continue to be based on the older spouse’s age for the life of the Contract;
|
|
•
|
If the deceased spouse was the Annuitant, the surviving spouse becomes the Annuitant. If the deceased spouse was a joint Annuitant, the Contract will become a single Annuitant Contract; and
|
|
•
|
The Withdrawal Charge schedule remains in effect. Please note that Withdrawal Charges do not apply to Accumulator® SelectSM Contracts.
|
|
•
|
The Contract continues with your name on it for the benefit of your beneficiary;
|
|
•
|
The beneficiary replaces the deceased Owner as Annuitant;
|
|
•
|
This feature is only available if the beneficiary is an individual. Certain trusts with only individual beneficiaries will be treated as individuals for this purpose;
|
|
•
|
If there is more than one beneficiary, each beneficiary’s share will be separately accounted for. It will be distributed over the beneficiary’s own life expectancy, if payments over life expectancy are chosen;
|
|
•
|
The minimum amount that is required in order to elect the BCO is $5,000 for each beneficiary;
|
|
•
|
The beneficiary may make transfers among the investment options but no additional contributions will be permitted;
|
|
•
|
If the GMIB or an optional enhanced death benefit is in effect under the Contract, they will no longer be in effect and charges for such benefits will stop. Also, any GMDB feature will no longer be in effect;
|
|
•
|
The beneficiary may choose at any time to withdraw all or a portion of the Account Value and no Withdrawal Charges, if any, will apply;
|
|
•
|
Any partial withdrawal must be at least $300;
|
|
•
|
Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the Contract;
|
|
•
|
Upon the death of your beneficiary, the following distribution rules will apply to the subsequent beneficiary named by your beneficiary:
|
|
○
|
If your beneficiary is an EDB or you died on or before December 31, 2019, the subsequent beneficiary must withdraw any remaining amount within ten years of your beneficiary’s death; or
|
|
○
|
If your beneficiary is not an EDB, the subsequent beneficiary must withdraw any remaining amount within 10 years of your death. The option elected will be processed when we receive satisfactory proof of death and any required instructions for the method of payment and any required information and forms necessary to effect payment.
|
|
•
|
If the deceased owner died on or before December 31, 2019 or you are an “eligible designated beneficiary” (as defined later in this Prospectus) electing to stretch out your payments over your life expectancy, you must receive payments at least annually (but can elect to receive payments monthly or quarterly). Payments are generally made over your life expectancy determined in the calendar year after the deceased Owner’s death and determined on a term certain basis;
|
|
•
|
If you are not an eligible designated beneficiary and the deceased owner died after December 31, 2019, the Inherited IRA Contract is designed to allow you to withdraw money whenever you want, so long as all amounts within the Contract are withdrawn annually and within ten years of the deceased participant’s death. In this case, the Inherited IRA Contract can only be purchased if you have at least 8 years remaining on the 10 year post-death payment period;
|
|
•
|
You must receive payments from the Contract even if you are receiving payments from another IRA of the deceased Owner in an amount that would otherwise satisfy the amount required to be distributed from the Contract. However, for certain Inherited IRAs, if you maintain another IRA of the same type (traditional or Roth) of the same deceased Owner and you are also taking distributions over your life from that inherited IRA, you may qualify to take an amount from that other inherited IRA which would otherwise satisfy the amount required to be distributed from our Inherited IRA Contract. If you choose not to take a payment from your Inherited IRA Contract in any year, you must notify us in writing before we make the payment from the Inherited IRA Contract, and we will not make any future payment unless you request in writing a reasonable time before we make such payment. If you choose to take a required payment from another inherited IRA, you are responsible for calculating the appropriate amount and reporting it on your income tax return. Please speak with your financial professional, or call if you have any questions;
|
|
•
|
The beneficiary of the original IRA will be the Annuitant under the Inherited IRA beneficiary continuation Contract. In the case where the beneficiary is a “see-through trust,” the oldest beneficiary of the trust will be the Annuitant;
|
|
•
|
An Inherited IRA beneficiary continuation Contract is not available for Owners over age 70;
|
|
•
|
The initial contribution must be a direct transfer from the deceased Owner’s original IRA and is subject to minimum contribution amounts. See “APPENDIX G - RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT” for more information;
|
|
•
|
Additional contributions of at least $1,000 are permitted but must be direct transfers of your interest as a beneficiary from another IRA with a financial institution other than the Company, where the deceased Owner is the same as under the original IRA Contract. A non-spousal beneficiary under an Applicable Plan cannot make subsequent contributions to an Inherited IRA contract;
|
|
•
|
You may make transfers among the investment options;
|
|
•
|
You may choose at any time to withdraw all or a portion of the Account Value. Any partial withdrawal must be at least $300. Withdrawal Charges will apply as described in “CHARGES AND FEES.” Please note that Withdrawal Charges do not apply to Accumulator® SelectSM Contracts;
|
|
•
|
The GMIB, spousal continuation, the Special DCA Programs (if available), automatic investment program, and systematic withdrawals are not available under the Inherited IRA beneficiary continuation Contract;
|
|
•
|
If you die, we will pay to a beneficiary that you choose the greater of the Account Value or the applicable death benefit; and
|
|
•
|
Upon your death, your beneficiary has the following options: (1) if you were an eligible designated beneficiary or the deceased Owner died on or before December 31, 2019, your beneficiary must withdraw any remaining amount within ten years of your death; or (2) if you were not an eligible designated beneficiary, the beneficiary must withdraw any remaining amount within 10 years of the deceased Owner’s death. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment. If your beneficiary elects to continue to take distributions, we will increase the Account Value to equal the applicable death benefit if such death benefit is greater than such Account Value as of the date we receive satisfactory proof of death and any required instructions, information and forms. Thereafter, Withdrawal Charges (if applicable under your Contract) will no longer apply. If you had elected any enhanced death benefits, they will no longer be in effect and charges for such benefits will stop. The GMDB will also no longer be in effect.
|
|
•
|
This feature is only available if the beneficiary is an individual. It is not available for any entity such as a trust, even if all of the beneficiaries of the trust are individuals;
|
|
•
|
The beneficiary automatically replaces the existing Annuitant;
|
|
•
|
The Contract continues with your name on it for the benefit of your beneficiary;
|
|
•
|
If there is more than one beneficiary, each beneficiary’s share will be separately accounted for. It will be distributed over a period not extending beyond each respective beneficiary’s own life expectancy, if scheduled payments are chosen;
|
|
•
|
The minimum amount that is required in order to elect the BCO is $5,000 for each beneficiary;
|
|
•
|
The beneficiary may make transfers among the investment options but no additional contributions will be permitted;
|
|
•
|
If the GMIB or an optional enhanced death benefit is elected under the Contract, they will no longer be in effect and charges for such benefits will stop. Also, any GMDB feature will no longer be in effect;
|
|
•
|
If the beneficiary chooses the “5-year rule,” withdrawals may be made at any time. If the beneficiary instead chooses scheduled payments, the beneficiary may also take withdrawals, in addition to scheduled payments, at any time;
|
|
•
|
Any partial withdrawals must be at least $300;
|
|
•
|
Your beneficiary will have the right to name a beneficiary to receive any remaining interest in the Contract on the beneficiary’s death; and
|
|
•
|
Upon the death of your beneficiary, the beneficiary he or she has named has the option to either continue taking scheduled payments based on the remaining life expectancy of the deceased beneficiary (if scheduled payments were chosen) or to receive any remaining interest in the Contract in a lump sum. We will pay any remaining interest in the Contract in a lump sum if your beneficiary elects the 5-year rule. The option elected will be processed when we receive satisfactory proof of death, any required instructions for the method of payment and any required information and forms necessary to effect payment.
|
|
•
|
As of the date we receive satisfactory proof of death and any required instructions, information and forms necessary to effect the BCO feature, we will increase the Account Value to equal the applicable death benefit if such death benefit is greater than such Account Value plus any amount applicable under the EEB adjusted for any subsequent withdrawals. For Accumulator® PlusSM Contracts, the Account Value will first be reduced by any Credits applied in a one-year period prior to the Owner’s or older joint Owner’s death; and
|
|
•
|
No Withdrawal Charges, if applicable under your Contract, will apply to any withdrawals by the beneficiary.
|
|
•
|
The Account Value will not be reset to the death benefit amount;
|
|
•
|
The Contract’s Withdrawal Charge schedule will continue to be applied to any withdrawal or surrender other than scheduled payments. The Contract’s free withdrawal amount will continue to apply to withdrawals but does not apply to surrenders. Please note that Withdrawal Charges do not apply to Accumulator® SelectSSM Contracts; and
|
|
•
|
We do not impose a Withdrawal Charge on scheduled payments except if, when added to any withdrawals previously taken in the same Contract Year, including for this purpose a Contract surrender, the total amount of withdrawals and scheduled payments exceed the free withdrawal amount. See the “Withdrawal Charges” in “CHARGES AND FEES.” Please note that Withdrawal Charges do not apply to Accumulator® SelectSM Contracts.
|
|
OPTIONAL LIVING BENEFITS
|
|
•
|
The benefit base computed for the Annual Ratchet DB. This benefit base is calculated as described in “Annual Ratchet to Age 85 Death Benefit (“Annual Ratchet DB”)” in “DEATH BENEFITS,” and
|
|
•
|
The benefit base computed for the GMIB Roll-up Benefit Base. This benefit base is calculated as described in “Greater of 6% Roll-up to Age 85 or the Annual Ratchet to Age 85 Enhanced Death Benefit” in “DEATH BENEFITS.” See also “Roll-up Benefit Base Reset” in “DEATH BENEFITS.”
|
|
Level Payments
|
||
|
Owner’s
age at exercise |
Period certain years
|
|
|
IRAs
|
Nonqualified
|
|
|
75 and younger
|
10
|
10
|
|
76
|
9
|
10
|
|
77
|
8
|
10
|
|
78
|
7
|
10
|
|
79
|
7
|
10
|
|
80
|
7
|
10
|
|
81
|
7
|
9
|
|
82
|
7
|
8
|
|
83
|
7
|
7
|
|
84
|
6
|
6
|
|
85
|
5
|
5
|
|
•
|
Your GMIB which is calculated by applying your GMIB base, less any applicable Withdrawal Charge remaining (if applicable under your Contract), to GMIB guaranteed annuity purchase factors; or
|
|
•
|
The income provided by applying your Account Value to our then current annuity purchase factors or base Contract guaranteed annuity purchase factors.
|
|
•
|
You will be issued a supplemental contract based on a single life with a maximum 10 year period certain. Payments will be made annually starting one year from the exercise date. Upon exercise, your Contract (including the GMDB, any other guaranteed benefits and any account or Cash Values) will terminate; and
|
|
•
|
You will have 30 days from when we notify you to change the annuity payout option and/or the payment frequency.
|
|
Contract Date Anniversary at exercise
|
GMIB Benefit Base
|
GMIB — annual income payable for life
|
|
10
|
$179,085
|
$11,891
|
|
15
|
$239,656
|
$18,597
|
|
•
|
If you were at least age 20 and no older than age 44 on the Contract Date, the initial waiting period is 15 years, and you are eligible to exercise the GMIB within 30 days following each Contract Date Anniversary beginning with the 15th Contract Date Anniversary;
|
|
•
|
If you were at least age 45 and no older than age 49 on the Contract Date, the initial waiting period runs until you reach age 60, and you are eligible to exercise the GMIB within 30 days following each Contract Date Anniversary after age 60; and
|
|
•
|
If you were at least age 50 and no older than age 75 on the Contract Date, the initial waiting period is 10 years, and you are eligible to exercise the GMIB within 30 days following each Contract Date Anniversary beginning with the 10th Contract Date Anniversary.
|
|
•
|
We must receive your notification in writing within 30 days following any Contract Date Anniversary on which you are eligible; and
|
|
•
|
Your Account Value must be greater than zero on the exercise date. See “Effect of Your Account Value Falling to Zero” in “THE ANNUITY CONTRACT” section of this Prospectus for more information about the impact of insufficient Account Value on your ability to exercise the GMIB.
|
|
•
|
If you were age 75 on the Contract Date or the Roll-up Benefit Base was reset, the only time you may exercise the GMIB is within 30 days following the Contract Date Anniversary following your attainment of age 85;
|
|
•
|
For Qualified Contracts, the plan participant can exercise the GMIB only if he or she elects to take a distribution from the plan and, in connection with this distribution, the plan’s trustee changes the ownership of the Contract to the participant. This affects a rollover of the Qualified Contract into a Rollover IRA. This process must be completed within the 30-day timeframe following the Contract Date Anniversary in order for the plan participant to be eligible to exercise. However, if the GMIB is automatically exercised as a result of the no lapse guarantee, a rollover into an IRA will not be affected and payments will be made directly to the trustee;
|
|
•
|
For Rollover 403(b) Contracts, you may exercise the GMIB only if you effect a rollover of the 403(b) Contract to a Rollover IRA. This may only occur when you are eligible for a distribution from the 403(b). This process must be completed within the 30-day timeframe following the Contract Date Anniversary in order for you to be eligible to exercise;
|
|
•
|
If you reset the Roll-up Benefit Base (as described earlier), your new exercise date will be the tenth Contract Date Anniversary following the reset or, if later, the earliest date you would have been permitted to exercise without regard to the reset. Please note that in almost all cases, resetting your Roll-up Benefit Base will lengthen the waiting period;
|
|
•
|
A spouse beneficiary or younger spouse joint Owner under spousal continuation may only continue the GMIB if the Contract is not past the last date on which the original Owner could have exercised the benefit. In addition, the spouse beneficiary or younger spouse joint Owner must be eligible to continue the benefit and to exercise the benefit under the applicable exercise rule (described in the above bullets) using the following additional rules. The spouse beneficiary or younger spouse joint Owner’s age on the date of the Owner’s death replaces the Owner’s age on the Contract Date for purposes of determining the availability of the benefit and which of the exercise rules applies. The original Contract Date will continue to apply for purposes of the exercise rules;
|
|
•
|
If the Contract is jointly owned and not an IRA Contract, you can elect to have the GMIB paid either as a joint life benefit, or as a single life benefit, paid on the basis of the older Owner’s age;
|
|
•
|
If the Contract is an IRA Contract, you can elect to have the GMIB paid either as a joint life benefit, but only if the joint Annuitant is your spouse, or as a single life benefit, paid on the basis of the Annuitant’s age; and
|
|
•
|
If the Contract is owned by a trust or other non-natural person, eligibility to elect or exercise the GMIB is based on the Annuitant’s age (or older joint Annuitant’s age, if applicable), rather than the Owner’s.
|
|
•
|
If you elected the GMIB, and the no lapse guarantee is in effect and your Account Value falls to zero, either due to a withdrawal or due to a deduction of charges.
|
|
•
|
The Guaranteed Benefit Lump Sum Payment Offer is optional;
|
|
•
|
The amount you will receive if you elect the Guaranteed Benefit Lump Sum Payment Offer;
|
|
•
|
If no action is taken, you will receive the stream of payments as promised under your Contract;
|
|
•
|
The amount and frequency of the stream of payments based on a single life with a maximum 10 year period certain annuity for GMIB or on the annuity option elected;
|
|
•
|
That the amount you will receive if you accept the Guaranteed Benefit Lump Sum Payment Offer is less than the present value of the stream of payments;
|
|
•
|
A description of the factors you should consider when deciding to accept the Guaranteed Benefit Lump Sum Payment Offer;
|
|
•
|
The reason we are making the Guaranteed Benefit Lump Sum Payment Offer; and
|
|
•
|
That you may elect to receive a reduced series of income payments based on joint lives and can contact Customer Service to obtain the amount of a joint life annuity.
|
|
•
|
The Owner’s/Annuitant’s life expectancy (based on gender and age);
|
|
•
|
The current annual payment for the GMIB, adjusted for any outstanding Withdrawal Charge, in the form of a single life annuity; and
|
|
•
|
The interest rate at the time your Account Value fell to zero.
|
|
•
|
Whether, given your state of health, you believe you are likely to live to enjoy the future income benefits provided by the GMIB;
|
|
•
|
Whether a lump sum payment (which may be up to 50% less than the present value of the future stream of payments) is more important to you than a future stream of payments. See “APPENDIX H - GUARANTEED BENEFIT LUMP SUM PAYOUT OFFER HYPOTHETICAL EXAMPLE”; and
|
|
•
|
Whether there are differences in tax consequences for taking a lump sum as opposed to receiving annuity payments.
|
|
OTHER BENEFITS
|
|
•
|
The percentage you want invested in each investment option (whole percentages only), and
|
|
•
|
How often you want the rebalancing to occur (quarterly, semiannually, or annually on a Contract Year basis).
|
|
•
|
You must select a date that is more than three calendar days prior to your Contract Date Anniversary; and
|
|
•
|
You cannot select the 29th, 30th or 31st.
|
|
•
|
Stop them;
|
|
•
|
Change the pattern of your withdrawals (e.g., take an additional partial withdrawal) because you could become liable for the 10% additional federal tax that would have otherwise been due on prior withdrawals made under this option and for any interest on the delayed payment of the tax; or
|
|
•
|
Contribute any more to the Contract until after the later of age 59½ or five full years after the first withdrawal.
|
|
•
|
Preserve the Roll-up Benefit Base as of the last Contract Date Anniversary (or the benefit base as of the withdrawal transaction date); or
|
|
•
|
Take the full dollar-for-dollar withdrawal amount available under the Contract to avoid a pro rata reduction of the guaranteed benefit base.
|
|
•
|
It exceeds limits of federal income tax rules;
|
|
•
|
Interest and principal are not paid when due; or
|
|
•
|
In some instances, service with the employer terminates.
|
|
•
|
The greater of
|
|
○
|
50% of your Cash Value, less any outstanding loan balance; or
|
|
○
|
$10,000 less any outstanding loan balance;
|
|
•
|
$50,000 less the highest outstanding loan balance in the last 12 months; or
|
|
•
|
The greater of:
|
|
○
|
90% of your Cash Value; or
|
|
○
|
Your Cash Value less $2,500.
|
|
•
|
The date annuity payments begin;
|
|
•
|
The date the Contract terminates; and
|
|
•
|
The date a death benefit is paid (the outstanding loan, including any accrued but unpaid loan interest, will be deducted from the death benefit amount).
|
|
FEDERAL TAX CONSIDERATIONS
|
|
•
|
Your tax position (or the tax position of the beneficiary, as applicable) determines the federal taxation of amounts held or paid out under the Contract;
|
|
•
|
Tax laws change. It is possible that a change in the future could affect contracts issued in the past, including the Contract described in this prospectus;
|
|
•
|
This section addresses some, but not all, applicable federal income tax rules related to owning, making elections and/or initiating transactions under the Contract and generally does not discuss federal estate and gift tax implications, state and local taxes or any other tax provisions;
|
|
•
|
We do not make any guarantee about the tax treatment of the Contract or transactions involving the Contract; and
|
|
•
|
No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of those set forth below.
|
|
•
|
Diversification. Tax Code Section 817(h) requires that in a nonqualified Contract the investments of the Funds be “adequately diversified” in accordance with Treasury Regulations in order for the Contract to qualify as an annuity contract under federal tax law. The separate account, through the Funds, intends to comply with the diversification requirements prescribed by Tax Code Section 817(h) and by Treasury Regulations Sec. 1.817-5, which affects how the Funds’ assets may be invested. If it is determined, however, that your Contract does not satisfy the applicable diversification requirements because a Subaccount’s corresponding Fund fails to be adequately diversified for whatever reason, we will take appropriate steps to bring your Contract into compliance with such requirements, and we reserve the right to modify your Contract as necessary to do so;
|
|
•
|
Investor Control. Although earnings under nonqualified annuity contracts are generally not taxed until withdrawn, the IRS has stated in published rulings that a variable contract owner will be considered the owner of separate account assets if the contract owner possesses incidents of investment control over the assets. In these circumstances, income and gains from the separate account assets would be currently includible in the variable contract owner’s gross income. Future guidance regarding the extent to which owners could direct their investments among Subaccounts without being treated as owners of the underlying assets of the separate account may adversely affect the tax treatment of existing Contracts. The Company therefore reserves the right to modify the Contract as necessary to attempt to prevent the contract owner from being considered the federal tax owner of a proportional share of the assets of the separate account;
|
|
•
|
Post-Death Distributions. In order to be treated as an annuity contract for federal income tax purposes, the Tax Code requires a nonqualified Contract to contain certain provisions specifying how your interest in the Contract will be distributed in the event of your death. The nonqualified Contracts contain provisions that are intended to comply with these Tax Code requirements, although no regulations interpreting these requirements have yet been issued. When such requirements are clarified by regulation or otherwise, we intend to review such distribution provisions and modify them, if necessary, to assure that they comply with the applicable requirements;
|
|
•
|
Non-Natural Owners of a Nonqualified Contract. If the owner of the Contract is not a natural person (in other words, is not an individual), a nonqualified Contract generally is not treated as an annuity for federal income tax purposes and the income on the Contract for the taxable year is currently taxable as ordinary income. Income on the Contract is any increase in the contract value over the “investment in the Contract” (generally, the premium payments or other consideration you paid for the Contract less any nontaxable withdrawals) during the taxable year. There are some exceptions to this rule and a non-natural owner should consult with a tax and/or legal adviser before purchasing the Contract. When the contract owner is not a natural person, a change in the annuitant is treated as the death of the contract owner for purposes of the required distribution rules described above; and
|
|
•
|
Delayed Annuity Starting Date. If the Contract’s annuity starting date occurs (or is scheduled to occur) at a time when the annuitant has reached an advanced age (e.g. after age 95), it is possible that the Contract would not be treated as an annuity for federal income tax purposes. In that event, the income and gains under the Contract could be currently includible in your income.
|
|
•
|
Made on or after the taxpayer reaches age 59½;
|
|
•
|
Made on or after the death of a Contract Owner (or the primary Annuitant if the Contract Owner is a non-natural person);
|
|
•
|
Attributable to the taxpayer becoming disabled as defined in the Tax Code;
|
|
•
|
Made as part of a series of substantially equal periodic payments (at least annually) over your life or life expectancy or the joint lives or joint life expectancies of you and your designated beneficiary; or
|
|
•
|
The distribution is allocable to investment in the Contract before August 14, 1982.
|
|
•
|
First, from any remaining “investment in the contract” made prior to August 14, 1982, and exchanged into the Contract;
|
|
•
|
Next, from any “income on the contract” attributable to the investment made prior to August 14, 1982;
|
|
•
|
Then, from any “income on the contract” attributable to investments made after August 13, 1982; and
|
|
•
|
Lastly, from any remaining “investment in the contract” made after August 13, 1982.
|
|
•
|
On or after you begin receiving annuity payments under the Contract; or
|
|
•
|
Before you begin receiving such distributions.
|
|
•
|
Over the life of the designated beneficiary; or
|
|
•
|
Over a period not extending beyond the life expectancy of the designated beneficiary.
|
|
•
|
If distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract; or
|
|
•
|
If distributed under a payment option, they are taxed in the same way as annuity payments.
|
|
•
|
If distributed in a lump sum, they are included in income to the extent that they exceed the unrecovered investment in the Contract at that time; or
|
|
•
|
If distributed in accordance with the existing annuity option selected, 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.
|
|
•
|
Sections 401(a), 401(k) and 403(a) Plans. Sections 401(a), 401(k), and 403(a) of the Tax Code permit certain employers to establish various types of retirement plans for employees, and permit self-employed individuals to establish these plans for themselves and their employees;
|
|
•
|
403(b) Plans. Section 403(b) of the Tax Code allows employees of certain Tax Code Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, to a Contract that will provide an annuity for the employee’s retirement;
|
|
•
|
Individual Retirement Annuities (“IRA”) and Roth IRA. Section 408 of the Tax Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (“IRA”). Certain employers may establish Simplified Employee Pension (“SEP”) or Savings Incentive Match Plan for Employees (“SIMPLE”) plans to provide IRA contributions on behalf of their employees. Section 408A of the Tax Code permits certain eligible individuals to contribute to a Roth IRA, which provides for tax-free distributions, subject to certain restrictions. Sales of the Contract for use with IRAs or Roth IRAs may be subject to special requirements of the IRS. The IRS has not reviewed the Contract described in this prospectus for qualification as an IRA or Roth IRA, as applicable, and has not addressed, in a ruling of general applicability, whether the Contract’s Death Benefit provisions comply with IRA or Roth IRA, as applicable, qualification requirements; and
|
|
•
|
457 Plans. Section 457 of the Tax Code permits certain employers to offer deferred compensation plans for their employees. These plans may be offered by state governments, local governments, political subdivisions, agencies, instrumentalities, and certain affiliates of such entities (governmental employers), as well as non-governmental, tax-exempt organizations (non-governmental employers). A 457 plan may be either a 457(b) plan or a 457(f) plan. Participation in a 457(b) plan maintained by a non-governmental employer is generally limited to a select group of management and highly-compensated employees (other than 457(b) plans maintained by nonqualified, church-controlled organizations). Depending on the plan design, the participant may be entitled to determine the investment allocation of their deferred compensation account. There is no further information specific to 457 plans in this prospectus.
|
|
•
|
Contributions in excess of specified limits;
|
|
•
|
Distributions before age 59½ (subject to certain exceptions);
|
|
•
|
Distributions that do not conform to specified commencement and minimum distribution rules; and
|
|
•
|
Certain other specified circumstances.
|
|
•
|
$7,500 (2024); or
|
|
•
|
The participant’s compensation for the year reduced by any other elective deferrals of the participant for the year.
|
|
•
|
The distribution is an eligible rollover distribution and is directly transferred or rolled over within 60 days to another plan eligible to receive rollovers or to a traditional IRA in accordance with the Tax Code;
|
|
•
|
You made after-tax contributions to the plan. In this case, depending upon the type of distribution, the amount will be taxed on all or part of the earnings on the contributions according to the rules detailed in the Tax Code;
|
|
•
|
The distribution is a qualified distribution from a designated Roth account; or.
|
|
•
|
The distribution is a qualified health insurance premium of a retired public safety officer as defined in the Pension Protection Act of 2006.
|
|
•
|
Part of a series of substantially equal periodic payments (at least one per year) made over the life (or life expectancy) of the participant or the joint lives (or joint life expectancies) of the participant and his designated beneficiary or for a specified period of ten years or more;
|
|
•
|
A required minimum distribution under Tax Code Section 401(a)(9);
|
|
•
|
A hardship withdrawal; or
|
|
•
|
Otherwise recognized under applicable regulations as not eligible for rollover.
|
|
•
|
The distribution is directly transferred or rolled over within 60 days to another traditional IRA or to a plan eligible to receive rollovers as permitted under the Tax Code; or
|
|
•
|
You made after-tax contributions to the traditional IRA. In this case, the distribution will be taxed according to rules detailed in the Tax Code.
|
|
•
|
You have attained age 59½;
|
|
•
|
You have become disabled, as defined in the Tax Code;
|
|
•
|
You have died and the distribution is to your beneficiary;
|
|
•
|
The distribution amount is rolled over tax free into another eligible retirement plan or to a traditional or Roth IRA in accordance with the terms of the Tax Code;
|
|
•
|
The distribution is paid directly to the government in accordance with an IRS levy;
|
|
•
|
The distribution is a qualified reservist distribution as defined under the Tax Code;
|
|
•
|
The distribution is a qualified birth or adoption distribution;
|
|
•
|
The distribution is an emergency personal expense distribution;
|
|
•
|
The distribution is an eligible distribution to a domestic abuse victim;
|
|
•
|
The distribution is made to an employee who is a terminally ill individual;
|
|
•
|
The distribution is eligible for relief extended to victims of certain natural disasters; or
|
|
•
|
You have unreimbursed medical expenses that are deductible (without regard to whether you itemize deductions).
|
|
•
|
The distribution amount is made in substantially equal periodic payments (at least annually) over your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary;
|
|
•
|
The distributions are not more than the cost of your medical insurance due to a period of unemployment (subject to certain conditions);
|
|
•
|
The distributions are not more than your qualified higher education expenses; or
|
|
•
|
You use the distribution to buy, build or rebuild a first home.
|
|
•
|
You have separated from service with the plan sponsor at or after age 55;
|
|
•
|
You are a qualified public safety employee or a private sector firefighter taking a distribution from a governmental plan or from a qualified plan, a 403(a) plan, or a 403(b) contract and you separated from service after age 50;
|
|
•
|
You have separated from service with the plan sponsor and the distribution amount is made in substantially equal periodic payments (at least annually) over your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated Beneficiary;
|
|
•
|
The withdrawal amount is paid to an alternate payee under a Qualified Domestic Relations Order (“QDRO”); or
|
|
•
|
The distribution is a distribution from a pension-linked emergency savings account as defined in the Tax Code.
|
|
•
|
It is made after the five-year period beginning with the first taxable year for which a contribution was made to any Roth IRA established for the benefit of the owner; and
|
|
•
|
It is:
|
|
○
|
Made on or after the date on which the owner attains age 59½;
|
|
○
|
Made to a beneficiary (or to the estate of the owner) on or after the death of the owner;
|
|
○
|
Attributable to the owner being disabled (within the meaning of the Tax Code); or
|
|
○
|
A qualified first-time homebuyer distribution (within the meaning of the Tax Code).
|
|
•
|
Retirement;
|
|
•
|
Death;
|
|
•
|
Disability;
|
|
•
|
Severance from employment;
|
|
•
|
Attainment of age 59½;
|
|
•
|
Termination of the plan; or
|
|
•
|
Meeting other circumstances as allowed by federal law, regulations, or rulings.
|
|
•
|
The start date for distributions;
|
|
•
|
The time period in which all amounts in your Contract(s) must be distributed; and
|
|
•
|
Distribution amounts.
|
|
•
|
Under 401(a), 401(k), 403(a), or 403(b) plans that are not governmental or church plans, you are a 5% owner, in which case such distributions must begin by April 1 of the calendar year following the calendar year in which you attain the “applicable age”; or
|
|
•
|
Under 403(b) plans, the Company maintains separate records of amounts held as of December 31, 1986. In this case distribution of these amounts generally must begin by the end of the calendar year in which you attain age 75. However, if you take any distributions in excess of the minimum required amount, then special rules require that the excess be distributed from the December 31, 1986 balance.
|
|
If you were born…
|
Your “applicable age” is…
|
|
Before July 1, 1949
|
70½
|
|
After June 30, 1949 and before 1951
|
72
|
|
After 1950 and before 1960*
|
73*
|
|
After 1958*
|
75*
|
| * | If you were born in 1959, you should consult your tax advisor regarding your “applicable age,” because it is not clear under SECURE 2.0 whether your “applicable age” is age 73 or age 75. |
|
•
|
Over your life or the joint lives of you and your designated beneficiary; or
|
|
•
|
Over a period not greater than your life expectancy or the joint life expectancies of you and your designated beneficiary.
|
|
•
|
A plan participant as a means to provide benefit payments;
|
|
•
|
An alternate payee under a QDRO in accordance with Tax Code Section 414(p);
|
|
•
|
The Company as collateral for a loan, if available; or
|
|
•
|
The enforcement of a federal income tax lien or levy.
|
|
OTHER INFORMATION
|
|
•
|
On any Business Day when the New York Stock Exchange (“NYSE”) is closed (except customary weekend and holiday closings);
|
|
•
|
When an emergency exists as determined by the SEC; or
|
|
•
|
During any other periods the SEC may, by order, permit for the protection of investors.
|
|
•
|
Litigation. The Company and/or DSL are or may be involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation/arbitration, suits sometimes include claims for substantial compensatory, consequential, or punitive damages and other types of relief. Certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. In addition, the life insurance industry has experienced litigation alleging, for example, that insurance companies have breached the terms of their life insurance policies by increasing the insurance rates of the applicable policies inappropriately or by factoring into rate adjustments elements not disclosed under the terms of the applicable policies, and, consequently, unjustly enriched themselves. This litigation is generally known as cost of insurance litigation. While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a material adverse effect on either the Company’s or DSL’s operations or financial position.
|
|
•
|
Regulatory Matters. As with other financial services companies, the Company, and its affiliates, including DSL, periodically receive informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company and DSL to cooperate fully in these matters. Regulatory investigations, exams, inquiries, and audits could result in regulatory action against the Company and/or DSL or subject the Company and/or DSL to settlement payments, fines, penalties, and other financial consequences, as well as changes to the Company’s and/or DSL’s policies and procedures.
|
|
APPENDIX A – FUNDS AVAILABLE UNDER THE CONTRACT
|
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Group, LLC Subadviser:
|
Class IB
Shares |
|
|
|
| 1 | This Fund is subject to a temporary expense reimbursement or fee waiver arrangement and the annual expenses shown reflect these temporary fee reduction arrangements. See the Fund’s prospectus for more information about the fee reduction arrangement. |
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadvisers:
Management, LLC |
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Group, LLC |
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
|
Class IB
Shares |
|
|
|
|
INVESTMENT OBJECTIVE
|
FUND NAME
INVESTMENT ADVISER/SUBADVISER |
CURRENT EXPENSES
|
AVERAGE ANNUAL
TOTAL RETURNS |
||
|
(as of 12/31/2023)
|
|||||
|
1 Year
|
5 Year
|
10 Year
|
|||
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadviser:
|
Class IB
Shares |
|
|
|
|
|
Investment Adviser:
Subadvisers:
|
Class IB
Shares |
|
|
|
|
APPENDIX B – ENHANCED DEATH BENEFIT EXAMPLES
|
|
End of Contract Year
|
Account Value
|
6% Roll-up to Age 85
Benefit Base |
Annual Ratchet to Age 85
Benefit Base2 |
|
1
|
$105,000
|
$106,000
|
$105,000
|
|
2
|
$115,500
|
$112,360
|
$115,500
|
|
3
|
$129,360
|
$119,102
|
$129,360
|
|
4
|
$103,488
|
$126,248
|
$129,360
|
|
5
|
$113,837
|
$133,823
|
$129,360
|
|
6
|
$127,497
|
$141,852
|
$129,360
|
|
7
|
$127,497
|
$150,363
|
$129,360
|
|
End of Contract Year
|
Account Value
|
6% Roll-up to Age 85
Benefit Base |
Annual Ratchet to Age 85
Benefit Base |
|
1
|
$109,200
|
$106,000
|
$109,200
|
|
2
|
$120,120
|
$112,360
|
$120,120
|
|
3
|
$134,534
|
$119,102
|
$134,534
|
|
4
|
$107,628
|
$126,248
|
$134,534
|
|
5
|
$118,390
|
$133,823
|
$134,534
|
|
6
|
$132,597
|
$141,852
|
$134,534
|
|
7
|
$132,597
|
$150,363
|
$134,534
|
|
APPENDIX C – HYPOTHETICAL ILLUSTRATIONS
|
|
•
|
Male, issue age 60;
|
|
•
|
$100,000 single contribution and no withdrawals; and
|
|
•
|
Elected Benefits:
|
|
○
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 GMDB;
|
|
○
|
EEB; and
|
|
○
|
GMIB.
|
|
Lifetime Annual GMIB
|
|||||||||||||
|
Age
|
Contract
Year |
Account Value
|
Cash Value
|
Greater of 6% Roll up to Age 85 or the Annual Ratchet to Age 85 GMDB/GMIB
|
Total Death Benefit with the EEB
|
Guaranteed Income
|
Hypothetical Income
|
||||||
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
||
|
60
|
0
|
100,000
|
100,000
|
93,000
|
93,000
|
100,000
|
100,000
|
100,000
|
100,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
61
|
1
|
96,080
|
102,059
|
88,722
|
94,701
|
106,000
|
106,000
|
108,400
|
108,400
|
N/A
|
N/A
|
N/A
|
N/A
|
|
62
|
2
|
92,176
|
104,105
|
84,452
|
96,358
|
112,360
|
112,360
|
117,304
|
117,304
|
N/A
|
N/A
|
N/A
|
N/A
|
|
63
|
3
|
88,285
|
106,135
|
81,185
|
98,963
|
119,102
|
119,102
|
126,742
|
126,742
|
N/A
|
N/A
|
N/A
|
N/A
|
|
64
|
4
|
84,399
|
108,141
|
76,914
|
100,508
|
126,248
|
126,248
|
136,747
|
136,747
|
N/A
|
N/A
|
N/A
|
N/A
|
|
65
|
5
|
80,514
|
110,118
|
73,632
|
102,985
|
133,823
|
133,823
|
147,352
|
147,352
|
N/A
|
N/A
|
N/A
|
N/A
|
|
66
|
6
|
76,623
|
112,058
|
71,332
|
106,384
|
141,852
|
141,852
|
158,593
|
158,593
|
N/A
|
N/A
|
N/A
|
N/A
|
|
67
|
7
|
72,720
|
113,955
|
69,007
|
109,693
|
150,363
|
150,363
|
170,508
|
170,508
|
N/A
|
N/A
|
N/A
|
N/A
|
|
68
|
8
|
68,799
|
115,799
|
65,649
|
111,903
|
159,385
|
159,385
|
183,139
|
183,139
|
N/A
|
N/A
|
N/A
|
N/A
|
|
69
|
9
|
64,854
|
117,582
|
61,251
|
113,001
|
168,948
|
168,948
|
196,527
|
196,527
|
N/A
|
N/A
|
N/A
|
N/A
|
|
70
|
10
|
60,877
|
119,295
|
56,804
|
113,974
|
179,085
|
179,085
|
210,719
|
210,719
|
8,829
|
8,829
|
8,829
|
8,829
|
|
75
|
15
|
40,202
|
126,410
|
33,442
|
116,439
|
239,656
|
239,656
|
295,518
|
295,518
|
13,397
|
13,397
|
13,397
|
13,397
|
|
80
|
20
|
17,456
|
129,815
|
17,456
|
129,815
|
320,714
|
320,714
|
408,999
|
408,999
|
24,599
|
24,599
|
24,599
|
24,599
|
|
85
|
25
|
0
|
127,129
|
0
|
127,129
|
0
|
429,187
|
0
|
517,472
|
0
|
39,700
|
0
|
39,700
|
|
90
|
30
|
0
|
135,587
|
0
|
135,587
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
95
|
35
|
0
|
145,602
|
0
|
145,602
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
•
|
Male, issue age 60;
|
|
•
|
$100,000 single contribution and no withdrawals; and
|
|
•
|
Elected Benefits:
|
|
○
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 GMDB;
|
|
○
|
EEB; and
|
|
○
|
GMIB.
|
|
Lifetime Annual GMIB
|
|||||||||||||
|
Age
|
Contract
Year |
Account Value
|
Cash Value
|
Greater of 6% Roll up to Age 85 or the Annual Ratchet to Age 85 GMDB/GMIB
|
Total Death Benefit with the EEB
|
Guaranteed Income
|
Hypothetical Income
|
||||||
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
||
|
60
|
0
|
104,000
|
104,000
|
96,000
|
96,000
|
100,000
|
100,000
|
100,000
|
100,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
61
|
1
|
99,719
|
105,937
|
91,719
|
97,937
|
106,000
|
106,000
|
108,400
|
108,400
|
N/A
|
N/A
|
N/A
|
N/A
|
|
62
|
2
|
95,475
|
107,853
|
87,475
|
99,853
|
112,360
|
112,360
|
117,304
|
117,304
|
N/A
|
N/A
|
N/A
|
N/A
|
|
63
|
3
|
91,261
|
109,743
|
84,261
|
102,743
|
119,102
|
119,102
|
126,742
|
126,742
|
N/A
|
N/A
|
N/A
|
N/A
|
|
64
|
4
|
87,073
|
111,600
|
80,073
|
104,600
|
126,248
|
126,248
|
136,747
|
136,747
|
N/A
|
N/A
|
N/A
|
N/A
|
|
65
|
5
|
82,902
|
113,417
|
76,902
|
107,417
|
133,823
|
133,823
|
147,352
|
147,352
|
N/A
|
N/A
|
N/A
|
N/A
|
|
66
|
6
|
78,744
|
115,189
|
73,744
|
110,189
|
141,852
|
141,852
|
158,593
|
158,593
|
N/A
|
N/A
|
N/A
|
N/A
|
|
67
|
7
|
74,591
|
116,906
|
70,591
|
112,906
|
150,363
|
150,363
|
170,508
|
170,508
|
N/A
|
N/A
|
N/A
|
N/A
|
|
68
|
8
|
70,437
|
118,560
|
67,437
|
115,560
|
159,385
|
159,385
|
183,139
|
183,139
|
N/A
|
N/A
|
N/A
|
N/A
|
|
69
|
9
|
66,275
|
120,143
|
66,275
|
120,143
|
168,948
|
168,948
|
196,527
|
196,527
|
N/A
|
N/A
|
N/A
|
N/A
|
|
70
|
10
|
62,096
|
121,644
|
62,096
|
121,644
|
179,085
|
179,085
|
210,719
|
210,719
|
10,584
|
10,584
|
10,584
|
10,584
|
|
75
|
15
|
40,642
|
127,535
|
40,642
|
127,535
|
239,656
|
239,656
|
295,518
|
295,518
|
15,362
|
15,362
|
15,362
|
15,362
|
|
80
|
20
|
17,472
|
129,430
|
17,472
|
129,430
|
320,714
|
320,714
|
408,999
|
408,999
|
24,599
|
24,599
|
24,599
|
24,599
|
|
85
|
25
|
0
|
124,961
|
0
|
124,961
|
0
|
429,187
|
0
|
517,472
|
0
|
39,700
|
0
|
39,700
|
|
90
|
30
|
0
|
131,321
|
0
|
131,321
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
95
|
35
|
0
|
138,762
|
0
|
138,762
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
•
|
Male, issue age 60;
|
|
•
|
$100,000 single contribution and no withdrawals; and
|
|
•
|
Elected Benefits:
|
|
○
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 GMDB;
|
|
○
|
EEB; and
|
|
○
|
GMIB.
|
|
Lifetime Annual GMIB
|
|||||||||||||
|
Age
|
Contract
Year |
Account Value
|
Cash Value
|
Greater of 6% Roll up to Age 85 or the Annual Ratchet to Age 85 GMDB/GMIB
|
Total Death Benefit with the EEB
|
Guaranteed Income
|
Hypothetical Income
|
||||||
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
||
|
60
|
0
|
100,000
|
100,000
|
92,000
|
92,000
|
100,000
|
100,000
|
100,000
|
100,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
61
|
1
|
95,731
|
101,710
|
87,731
|
93,710
|
106,000
|
106,000
|
108,400
|
108,400
|
N/A
|
N/A
|
N/A
|
N/A
|
|
62
|
2
|
91,503
|
103,390
|
84,503
|
96,390
|
112,360
|
112,360
|
117,304
|
117,304
|
N/A
|
N/A
|
N/A
|
N/A
|
|
63
|
3
|
87,309
|
105,034
|
81,309
|
99,034
|
119,102
|
119,102
|
126,742
|
126,742
|
N/A
|
N/A
|
N/A
|
N/A
|
|
64
|
4
|
82,914
|
106,508
|
76,914
|
100,508
|
126,248
|
126,248
|
136,747
|
136,747
|
N/A
|
N/A
|
N/A
|
N/A
|
|
65
|
5
|
79,000
|
108,190
|
79,000
|
108,190
|
133,823
|
133,823
|
147,352
|
147,352
|
N/A
|
N/A
|
N/A
|
N/A
|
|
66
|
6
|
74,872
|
109,686
|
74,872
|
109,686
|
141,852
|
141,852
|
158,593
|
158,593
|
N/A
|
N/A
|
N/A
|
N/A
|
|
67
|
7
|
70,753
|
111,119
|
70,753
|
111,119
|
150,363
|
150,363
|
170,508
|
170,508
|
N/A
|
N/A
|
N/A
|
N/A
|
|
68
|
8
|
66,635
|
112,478
|
66,635
|
112,478
|
159,385
|
159,385
|
183,139
|
183,139
|
N/A
|
N/A
|
N/A
|
N/A
|
|
69
|
9
|
62,512
|
113,755
|
62,512
|
113,755
|
168,948
|
168,948
|
196,527
|
196,527
|
N/A
|
N/A
|
N/A
|
N/A
|
|
70
|
10
|
58,377
|
114,939
|
58,377
|
114,939
|
179,085
|
179,085
|
210,719
|
210,719
|
10,584
|
10,584
|
10,584
|
10,584
|
|
75
|
15
|
37,150
|
119,071
|
37,150
|
119,071
|
239,656
|
239,656
|
295,518
|
295,518
|
15,362
|
15,362
|
15,362
|
15,362
|
|
80
|
20
|
14,310
|
118,894
|
14,310
|
118,894
|
320,714
|
320,714
|
408,999
|
408,999
|
24,599
|
24,599
|
24,599
|
24,599
|
|
85
|
25
|
0
|
112,014
|
0
|
112,014
|
0
|
429,187
|
0
|
517,472
|
0
|
39,700
|
0
|
39,700
|
|
90
|
30
|
0
|
115,573
|
0
|
115,573
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
95
|
35
|
0
|
119,717
|
0
|
119,717
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
•
|
Male, issue age 60;
|
|
•
|
$100,000 single contribution and no withdrawals; and
|
|
•
|
Elected Benefits:
|
|
○
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 GMDB;
|
|
○
|
EEB; and
|
|
○
|
GMIB.
|
|
Lifetime Annual GMIB
|
|||||||||||||
|
Age
|
Contract
Year |
Account Value
|
Cash Value
|
Greater of 6% Roll up to Age 85 or the Annual Ratchet to Age 85 GMDB/GMIB
|
Total Death Benefit with the EEB
|
Guaranteed Income
|
Hypothetical Income
|
||||||
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
0%
|
6%
|
||
|
60
|
0
|
100,000
|
100,000
|
100,000
|
100,000
|
100,000
|
100,000
|
100,000
|
100,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
61
|
1
|
95,681
|
101,660
|
95,681
|
101,660
|
106,000
|
106,000
|
108,400
|
108,400
|
N/A
|
N/A
|
N/A
|
N/A
|
|
62
|
2
|
91,407
|
103,288
|
91,407
|
103,288
|
112,360
|
112,360
|
117,304
|
117,304
|
N/A
|
N/A
|
N/A
|
N/A
|
|
63
|
3
|
87,170
|
104,878
|
87,170
|
104,878
|
119,102
|
119,102
|
126,742
|
126,742
|
N/A
|
N/A
|
N/A
|
N/A
|
|
64
|
4
|
82,965
|
106,423
|
82,965
|
106,423
|
126,248
|
126,248
|
136,747
|
136,747
|
N/A
|
N/A
|
N/A
|
N/A
|
|
65
|
5
|
78,786
|
107,916
|
78,786
|
107,916
|
133,823
|
133,823
|
147,352
|
147,352
|
N/A
|
N/A
|
N/A
|
N/A
|
|
66
|
6
|
74,625
|
109,351
|
74,625
|
109,351
|
141,852
|
141,852
|
158,593
|
158,593
|
N/A
|
N/A
|
N/A
|
N/A
|
|
67
|
7
|
70,475
|
110,718
|
70,475
|
110,718
|
150,363
|
150,363
|
170,508
|
170,508
|
N/A
|
N/A
|
N/A
|
N/A
|
|
68
|
8
|
66,331
|
112,010
|
66,331
|
112,010
|
159,385
|
159,385
|
183,139
|
183,139
|
N/A
|
N/A
|
N/A
|
N/A
|
|
69
|
9
|
62,184
|
113,217
|
62,184
|
113,217
|
168,948
|
168,948
|
196,527
|
196,527
|
N/A
|
N/A
|
N/A
|
N/A
|
|
70
|
10
|
58,027
|
114,328
|
58,027
|
114,328
|
179,085
|
179,085
|
210,719
|
210,719
|
10,584
|
10,584
|
10,584
|
10,584
|
|
75
|
15
|
36,732
|
118,052
|
36,732
|
118,052
|
239,656
|
239,656
|
295,518
|
295,518
|
15,362
|
15,362
|
15,362
|
15,362
|
|
80
|
20
|
13,884
|
117,394
|
13,884
|
117,394
|
320,714
|
320,714
|
408,999
|
408,999
|
24,599
|
24,599
|
24,599
|
24,599
|
|
85
|
25
|
0
|
109,963
|
0
|
109,963
|
0
|
429,187
|
0
|
517,472
|
0
|
33,863
|
0
|
33,863
|
|
90
|
30
|
0
|
112,891
|
0
|
112,891
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
95
|
35
|
0
|
116,291
|
0
|
116,291
|
0
|
429,187
|
0
|
517,472
|
N/A
|
N/A
|
N/A
|
N/A
|
|
APPENDIX D – EARNINGS ENHANCEMENT BENEFIT EXAMPLE
|
|
No withdrawal
|
$3,000 withdrawal
|
$6,000 withdrawal
|
||
|
A
|
Initial contribution
|
100,000
|
100,000
|
100,000
|
|
B
|
Death benefit: prior to withdrawal.*
|
104,000
|
104,000
|
104,000
|
|
C
|
EEB earnings: Death benefit less net contributions (prior to the withdrawal in D).
|
4,000
|
4,000
|
4,000
|
|
B minus A.
|
||||
|
D
|
Withdrawal
|
0
|
3,000
|
6,000
|
|
E
|
Excess of the withdrawal over the EEB earnings
|
0
|
0
|
2,000
|
|
greater of D minus C or zero
|
||||
|
F
|
Net contributions (adjusted for the withdrawal in D)
|
100,000
|
100,000
|
98,000
|
|
A minus E
|
||||
|
G
|
Death benefit (adjusted for the withdrawal in D)
|
104,000
|
101,000**
|
98,000**
|
|
B minus D
|
||||
|
H
|
Death benefit less net contributions
|
4,000
|
1,000
|
0
|
|
G minus F
|
||||
|
I
|
EEB factor
|
40%
|
40%
|
40%
|
|
J
|
EEB
|
1,600
|
400
|
0
|
|
H times I
|
||||
|
K
|
Death benefit: including the EEB
|
105,600
|
101,400
|
98,000
|
|
G plus J
|
| * | The death benefit is the greater of the Account Value or any applicable enhanced death benefit. |
| ** | Assumes no earnings on the Contract and that the withdrawal would reduce the death benefit on a dollar-for-dollar basis. |
|
APPENDIX E – STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS
|
|
•
|
Qualified defined contribution retirement plan (“Qualified 401(a) and 401(k)”) Contracts, and
|
|
•
|
All Contracts issued in the states of Florida or Oregon, except Tax Sheltered Annuity (“403(b)”) Contracts.
|
|
State
|
Features and Benefits
|
Availability or Variation
|
|
Florida
|
See “Credits (For Accumulator® PlusSM Contracts only)” in “THE ANNUITY CONTRACT”
|
The following information replaces the second bullet of the final set of bullets in this section:
|
|
Oregon (For Accumulator®, Accumulator® PlusSM and Accumulator® EliteSM Contracts only — Accumulator® SelectSM Contracts not available)
|
Special dollar cost averaging program (For Accumulator® and Accumulator® EliteSM Contracts only)
|
|
|
See “GMDB/GMIB Roll-up Benefit Base Reset” in “DEATH BENEFITS”
|
The Roll-up Benefit Base is eligible for reset beginning on the fifth Contract Date Anniversary and on each fifth or later Contract Date Anniversary after a reset.
|
|
State
|
Features and Benefits
|
Availability or Variation
|
|
See “Lifetime Required Minimum Distribution (“RMD”) Withdrawals” under “WITHDRAWALS”
|
The following replaces the paragraph regarding Withdrawal Charges:
We generally will not impose a Withdrawal Charge on minimum distribution withdrawals even if you are not enrolled in our automatic RMD service except if, when added to a lump sum withdrawal previously taken in the same Contract Year, the minimum distribution withdrawals exceed the 10% free withdrawal amount. In order to avoid a Withdrawal Charge in connection with minimum distribution withdrawals outside of our automatic RMD service, you must notify us using our request form. Such minimum distribution withdrawals must be based solely on your Contract’s Account Value.
|
|
|
See “Selecting an Annuity Payout Option” in “ANNUITY OPTIONS”
|
For Accumulator® Contracts, an annuity commencement date earlier than seven years from the Contract Date may not be elected.
For Accumulator® EliteSM Contracts, an annuity commencement date earlier than four years from the Contract Date may not be elected.
For Accumulator® PlusSM Contracts, an annuity commencement date earlier than eight years from the Contract Date may not be elected.
|
|
|
See “Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85” in “CHARGES AND FEES”
|
The charge is equal to 0.60% of the Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 benefit base.
|
|
|
See “Disability, Terminal Illness, or Confinement to a Nursing Home” under “Withdrawal Charge” in “CHARGES AND FEES”
|
The first bullet in this listing of situations where the Withdrawal Charge does not apply is deleted in its entirety.
|
|
|
Pennsylvania
|
Contributions
|
Your Contract refers to contributions as premiums.
|
|
Special dollar cost averaging program (For Accumulator® and Accumulator® EliteSM Contracts only)
|
In Pennsylvania, we refer to this program as “enhanced rate dollar cost averaging.”
|
|
|
See “Disability, Terminal Illness, or Confinement to a Nursing Home” under “Withdrawal Charge” in “CHARGES AND FEES”
|
The third bullet (and all sub-bullets) in this listing of situations where the Withdrawal Charge does not apply is deleted in its entirety.
|
|
|
Required disclosure for Pennsylvania customers
|
Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties.
|
|
|
Texas
|
See “Annual Administrative Charge” under “Other Charges” in “CHARGES AND FEES”
|
We will deduct the Annual Administrative Charge on a pro rata basis but only from your value in the Subaccounts. We will not deduct this charge from your value in the Guaranteed Interest Option.
|
|
State
|
Features and Benefits
|
Availability or Variation
|
|
Washington
|
Guaranteed Interest Option
|
Not Available
|
|
Fixed-Dollar DCA Program and Interest Sweep DCA Program
|
Not Available
|
|
|
Account for Special DCA (For Accumulator® and Accumulator® EliteSM Contracts only)
|
|
|
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 Enhanced Death Benefit
|
All references to this feature are deleted in their entirety and replaced with the “Greater of 4% Roll-up to Age 85 or Annual Ratchet to Age 85.”
|
|
|
See “GMDB Charges” in “FEES AND EXPENSES TABLES” and “Enhanced Death Benefit Charges” in “CHARGES AND FEES”
|
The charge for the Greater of 4% Roll-up to Age 85 or Annual Ratchet to Age 85 is 0.60%
|
|
|
See “GMDB/GMIB Roll-up Benefit Base Reset” in “DEATH BENEFITS”
|
|
|
|
See “GMDB/GMIB Roll-up Benefit Base Reset ” in “DEATH BENEFITS”
|
Your Greater of 4% Roll-up to Age 85 or Annual Ratchet to Age 85 enhanced death benefit base will reset only if your Account Value is greater than your GMIB Roll-up Benefit Base.
|
|
State
|
Features and Benefits
|
Availability or Variation
|
|
See “Annual Administrative Charge” in “CHARGES AND FEES”
|
For Accumulator® and Accumulator® EliteSM Contracts:
The Annual Administrative Charge will be deducted from the value in the Subaccounts on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the Account for Special DCA. If the Contract is surrendered or annuitized or a death benefit is paid on a date other than a Contract Date Anniversary, we will deduct a pro rata portion of that charge for the year.
For Accumulator® SelectSM Contracts:
The Annual Administrative Charge will be deducted from the value in the Subaccounts on a pro rata basis. If those amounts are insufficient, we will deduct all or a portion of the charge from the accounts for dollar cost averaging. If the Contract is surrendered or annuitized or a death benefit is paid on a date other than a Contract Date Anniversary, we will deduct a pro rata portion of that charge for the year.
For Accumulator® PlusSM Contracts:
The Annual Administrative Charge will be deducted from the value in the Subaccounts on a pro rata basis. If the Contract is surrendered or annuitized or a death benefit is paid on a date other than a Contract Date Anniversary, we will deduct a pro rata portion of that charge for the year.
|
|
|
See “How Withdrawals Affect Your GMIB and GMDB” in “WITHDRAWALS”
|
With respect to the GMIB and the Greater of 4% Roll-up to Age 85 or Annual Ratchet to Age 85 enhanced death benefit, withdrawals (including any applicable Withdrawal Charges) will reduce each of the benefits’ Roll-up Benefit Base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a Contract Year is 6% or less of each benefit’s Roll-up Benefit Base on the Contract Date or the most recent Contract Date Anniversary, if later. With respect to the Greater of 4% Roll-up to Age 85 or Annual Ratchet to Age 85 enhanced death benefit, if elected without the GMIB, withdrawals (including any applicable Withdrawal Charges) will reduce the 4% Roll-up to Age 85 benefit base on a dollar-for-dollar basis, as long as the sum of the withdrawals in a Contract Year is 6% or less of the 4% Roll-up to Age 85 or the Annual Ratchet to Age 85 benefit base on the Contract Date or the most recent Contract Date Anniversary, if later.
|
|
|
See “10% Free Withdrawal Amount” under “Withdrawal Charge” (For Accumulator®, Accumulator® PlusSM and Accumulator® EliteSM Contracts only) in “CHARGES AND FEES”
|
The 10% free withdrawal amount applies to full surrenders.
|
|
State
|
Features and Benefits
|
Availability or Variation
|
|
See “Certain Withdrawals” under “Withdrawal Charge” (For Accumulator®, Accumulator® PlusSM and Accumulator® EliteSM Contracts only) in “CHARGES AND FEES”
|
If you elected the Greater of 4% Roll-up to Age 85 or Annual Ratchet to Age 85 enhanced death benefit without a GMIB, the Withdrawal Charge will be waived for any withdrawal that, together with any prior withdrawals made during the Contract Year, does not exceed 6% of the beginning of Contract Year 4% Roll-up to Age 85 benefit base, even if such withdrawals exceed the free withdrawal amount.
|
|
|
See “Disability, terminal illness, or confinement to nursing home” under “Withdrawal Charge” (For Accumulator®, Accumulator® PlusSM and Accumulator® EliteSM Contracts only) in “CHARGES AND FEES”
|
The first bullet in this section about when Withdrawal Charges do not apply is deleted and replaced with the following:
The Owner (or older joint Owner, if applicable) has qualified to receive Social Security disability benefits as certified by the Social Security Administration or a statement from an independent U.S. licensed physician stating that the Owner (or older joint Owner, if applicable) meets the definition of total disability for at least 6 continuous months prior to the notice of claim. Such disability must be recertified every 12 months.
|
|
APPENDIX F – CONTRACT VARIATIONS
|
|
Approximate Time Period
|
Feature/Benefit
|
Variation
|
|
Before January 16, 2007
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 enhanced death benefit
|
The fee for this benefit is 0.60%.
|
|
GMDB/ GMIB Roll-up Benefit Base reset
|
The Roll-up Benefit Base is eligible for reset beginning on the fifth Contract Date Anniversary and on each fifth or later Contract Date Anniversary after a reset.
|
|
|
On or after January 16, 2007
|
Greater of 6% Roll-up to Age 85 or Annual Ratchet to Age 85 enhanced death benefit
|
The fee for this benefit is 0.65%.*
|
|
GMDB/ GMIB Roll-up Benefit Base Reset
|
The Roll-up Benefit Base is eligible for reset annually.*
|
| * | This charge and feature are not available to Contracts issued in Oregon. |
|
APPENDIX G – RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
|
|
•
|
Qualified defined contribution retirement plan (“Qualified 401(a) and 401(k)”) Contracts, and
|
|
•
|
All Contracts issued in the state of Florida or Oregon, except Tax Sheltered Annuity (“403(b)”) Contracts.
|
|
Contract Type - Nonqualified
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
After-tax money.
|
|
•
|
Paid to us by check or transfer of Contract value in a tax-deferred exchange under Section 1035 of the Tax Code.
|
|
|
Limitations on Contributions*
|
•
|
No additional contributions may be made after attainment of age 86, or if later, the first Contract Date Anniversary. (Accumulator®, Accumulator® EliteSM and Accumulator® SelectSM)
|
|
•
|
No additional contributions may be made after attainment of age 81 or, if later, the first Contract Date Anniversary. (Accumulator® PlusSM)
|
|
|
Contract Type - Rollover IRA
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
Eligible rollover distributions from 403(b) plans, qualified plans, and governmental employer 457(b) plans.
|
|
•
|
Rollovers from another traditional individual retirement arrangement.
|
|
|
•
|
Direct custodian-to-custodian transfers from another traditional individual retirement arrangement.
|
|
|
•
|
Regular IRA contributions.
|
|
|
•
|
Additional catch-up contributions.
|
|
|
Limitations on Contributions*
|
•
|
No additional contributions may be made after attainment of age 86, or, if later, the first Contract Date Anniversary. (Accumulator®, Accumulator® EliteSM and Accumulator® SelectSM)
|
|
•
|
No additional contributions after attainment of age 81 or, if later, the first Contract Date Anniversary. (Accumulator® PlusSM)
|
|
|
•
|
Contributions made after lifetime required minimum distributions must start must be net of required minimum distributions.
|
|
|
Although we accept regular IRA contributions (limited to $6,000) under Rollover IRA Contracts, we intend that the Contract be used primarily for rollover and direct transfer contributions
|
||
|
•
|
Additional catch-up contributions of up to $1,000 per calendar year where the Owner is at least age 50 at any time during the calendar year for which the contribution is made.
|
|
| * | Additional contributions may not be permitted under certain conditions in your state. Please see “APPENDIX E - STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS” to see if additional contributions are permitted in your state. In addition to the limitations described here, we also reserve the right to refuse to accept any contribution under the Contract at any time. |
|
Contract Type - Roth Conversion IRA
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
Rollovers from another Roth IRA.
|
|
•
|
Rollovers from a “designated Roth contribution account” under specified retirement plans.
|
|
|
•
|
Conversion rollovers from a traditional IRA or other eligible retirement plan.
|
|
|
•
|
Direct transfers from another Roth IRA.
|
|
|
•
|
Regular Roth IRA contributions.
|
|
|
•
|
Additional catch-up contributions.
|
|
|
Limitations on Contributions*
|
•
|
No additional rollover or direct contributions after attainment of age 81, or, if later, the first Contract Date Anniversary. (Accumulator®)
|
|
•
|
No additional rollover or direct contributions after attainment of age 81 or, if later, the first Contract Date Anniversary. (Accumulator® PlusSM)
|
|
|
•
|
No additional rollover or direct transfer contributions after attainment of age 86 or, If later, the first Contract Date Anniversary (Accumulator® EliteSM and Accumulator® SelectSM).
|
|
|
•
|
Conversion rollovers after lifetime required minimum distributions must start from the traditional IRA or other eligible retirement plan which is the source of the conversion rollover must be net of any required minimum distributions.
|
|
|
•
|
Although we accept Roth IRA contributions (limited to $6,000) under Roth IRA Contracts, we intend that the Contract be used primarily for rollover and direct transfer contributions.
|
|
|
•
|
Additional catch-up contributions of up to $1,000 per calendar year where the Owner is at least age 50 at any time during the calendar year for which the contribution is made.
|
|
|
Contract Type - Inherited IRA Beneficiary Continuation Contract (traditional IRA or Roth IRA)
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
Direct custodian-to-custodian transfers of your interest as a death beneficiary of the deceased Owner’s traditional individual retirement arrangement or Roth IRA to an IRA of the same type.
|
|
•
|
Non-spousal beneficiary direct rollover contributions may be made to an Inherited IRA Contract under specified circumstances from these “Applicable Plans”: qualified plans, 403(b) plans and governmental employer 457(b) plans.
|
|
|
Limitations on Contributions*
|
•
|
Any additional contributions must be from the same type of IRA of the same deceased Owner.
|
| * | Additional contributions may not be permitted under certain conditions in your state. Please see “APPENDIX E - STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS” to see if additional contributions are permitted in your state. In addition to the limitations described here, we also reserve the right to refuse to accept any contribution under the Contract at any time. |
|
Contract Type – Qualified 401(a) and 401(k)
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
Only transfer contributions from other investments within an existing qualified plan trust.
|
|
•
|
The plan must be qualified under Section 401(a) of the Tax Code.
|
|
|
•
|
For 401(k) plans, transferred contributions may not include any after-tax contributions, including designated Roth contributions.
|
|
|
Limitations on Contributions*
|
•
|
A separate Qualified Contract must be established for each plan participant.
|
|
•
|
We do not accept regular on-going payroll contributions or contributions directly from the employer.
|
|
|
•
|
Only one additional transfer contribution may be made during a Contract Year.
|
|
|
•
|
No
additional transfer contributions after the Annuitant’s attainment of age 76 (age 71 under Accumulator®
PlusSM Contracts)
or if later, the first Contract Date Anniversary.
|
|
|
•
|
Contributions made after lifetime required minimum distributions must start must be net of any required minimum distributions.
|
|
|
•
|
We do not accept contributions from defined benefit plans.
|
|
|
Contract Type - Flexible Premium IRA
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
Regular traditional IRA contributions.
|
|
•
|
Additional catch-up contributions.
|
|
|
•
|
Eligible rollover distributions from 403(b) plans, qualified plans, and governmental employer 457(b) plans.
|
|
|
•
|
Rollovers from another traditional individual retirement arrangement.
|
|
|
•
|
Direct custodian-to-custodian transfers from another traditional individual retirement arrangement.
|
|
|
Limitations on Contributions*
|
•
|
Regular contributions may not exceed $6,000.
|
|
•
|
Additional catch-up contributions of up to $1,000 per calendar year where the Owner is at least age 50 at any time during the calendar year for which the contribution is made.
|
|
|
•
|
Although we accept rollover and direct transfer contributions under the Flexible Premium IRA Contract, we intend that the Contract be used for ongoing regular contributions.
|
|
|
•
|
Rollover and direct transfer contributions may be made up to attainment of age 86.
|
|
|
•
|
Rollover and direct transfer contributions after lifetime required minimum distributions must start must be net of required minimum distributions.
|
|
| * | Additional contributions may not be permitted under certain conditions in your state. Please see “APPENDIX E - STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS” to see if additional contributions are permitted in your state. In addition to the limitations described here, we also reserve the right to refuse to accept any contribution under the Contract at any time. |
|
Contract Type - Flexible Premium Roth IRA
|
||
|
Minimum Additional Contribution Amount
|
•
|
$50
|
|
Source of Contributions
|
•
|
Regular Roth IRA contributions.
|
|
•
|
Additional catch-up contributions.
|
|
|
•
|
Rollovers from another Roth IRA.
|
|
|
•
|
Rollovers from a ‘‘designated Roth contribution account’’ under specified retirement plans.
|
|
|
•
|
Conversion rollovers from a traditional IRA or other eligible retirement plan.
|
|
|
•
|
Direct transfers from another Roth IRA.
|
|
|
Limitations on Contributions*
|
•
|
No additional contributions may be made after attainment of age 86, or, if later, the first Contract Date Anniversary.
|
|
•
|
Contributions are subject to income limits and other tax rules.
|
|
|
•
|
Regular Roth IRA contributions may not exceed $6,000.
|
|
|
•
|
Additional catch-up contributions of up to $1,000 per calendar year where the Owner is at least age 50 at any time during the calendar year for which the contribution is made.
|
|
|
•
|
Although we accept rollover and direct transfer contributions under the Flexible Premium Roth IRA Contract, we intend that the Contract be used for ongoing regular Roth IRA contributions.
|
|
| * | Additional contributions may not be permitted under certain conditions in your state. Please see “APPENDIX E - STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS” to see if additional contributions are permitted in your state. In addition to the limitations described here, we also reserve the right to refuse to accept any contribution under the Contract at any time. |
|
APPENDIX H – GUARANTEED BENEFIT LUMP SUM PAYMENT OFFER HYPOTHETICAL EXAMPLE
|
|
If the Type of Annuity Is(*):
|
Then the Annual Payment Amount Would Be:
|
|
A single life annuity
|
$7,764.13
|
|
A single life annuity with a maximum 10-year period certain
|
$6,406.96
|
|
A joint life annuity
|
$5,675.19
|
|
A joint life annuity with a maximum 10-year period certain
|
$5,561.69
|
| * | These are the only annuity payout options available under the GMIB. Not all annuity payout options are available in all Contract classes. |
|
If the Percentage of Computed Contract Reserve Is:
|
Then the Guaranteed Benefit Lump Sum Payment Amount Would Be:
|
|
50%
|
$35,397.46
|
|
60%
|
$42,476.95
|
|
70%
|
$49,556.45
|
|
80%
|
$56,635.94
|
|
90%
|
$63,715.43
|
|
STATEMENT OF ADDITIONAL INFORMATION
|
|
Class/Contract Identifier: C000245596
|
(6.0)
|
STATEMENT
OF ADDITIONAL INFORMATION
The
Accumulator® Series
Deferred
Combination Variable and Fixed Annuity Contracts
issued
by
SEPARATE
ACCOUNT EQ
of
VENERABLE
INSURANCE AND ANNUITY COMPANY
This Statement of Additional Information (“SAI”) is not a prospectus. The information contained herein should be read in conjunction with the Prospectus for the Accumulator Series group and individual deferred combination variable and fixed annuity contracts (the “Contract” or the “Contracts”) issued by Venerable Insurance and Annuity Company (the “Company,” “we,” “us” and “our”) through Separate Account EQ of Venerable Insurance and Annuity Company (“Separate Account EQ”), which is included herein by reference. The Accumulator® Series consists of four Contract classes: Accumulator®; Accumulator® PlusSM; Accumulator® EliteSM; and Accumulator® SelectSM. The Prospectus, as supplemented, includes information that you should consider before electing to exchange your Accumulator® Series variable annuity contract issued by Equitable Financial Life Insurance Company for the Contract. For a copy of the Prospectus, send a written request to Venerable Insurance and Annuity Company, Customer Service, P.O. Box 9271 Des Moines, Iowa 50306-9271 or telephone (800) 366-0066, or access the Security and Exchange Commission’s (“SEC”) website (www.sec.gov).
DATE
OF PROSPECTUS AND
STATEMENT
OF ADDITIONAL INFORMATION
May
24, 2024
|
TABLE OF CONTENTS |
Page |
1
General Information and History
Venerable Insurance and Annuity Company. We are an Iowa stock life insurance company, which was originally organized in 1973 under the insurance laws of Minnesota. Prior to September 1, 2019, we were known as Voya Insurance and Annuity Company. Prior to September 1, 2014, we were known as ING USA Annuity and Life Insurance Company. Prior to January 1, 2004, we were known as Golden American Life Insurance Company. On June 1, 2018, we became an indirect wholly owned subsidiary of VA Capital Company LLC, an insurance holding company organized under Delaware law (“VA Capital”). Our direct parent company is Venerable Holdings, Inc. (“Venerable”). Before June 1, 2018, we were an indirect, wholly owned subsidiary of Voya Financial, Inc. (“Voya”).
Although we are a subsidiary of VA Capital and Venerable, neither VA Capital nor Venerable are responsible for the obligations under the Contract. The obligations under the Contract are solely our responsibility.
We are engaged in the business of administering insurance and annuities, and we no longer sell or issue any new insurance or annuities. Our principal office is located at 699 Walnut Street, Suite 1350, Des Moines, Iowa 50309-3942.
Separate Account EQ. Separate Account EQ was established by the Company for the purpose of funding variable annuity contracts. It is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”). We own all the assets in Separate Account EQ but such assets are kept separate from our other accounts.
Separate Account EQ is divided into subaccounts. Each subaccount invests exclusively in shares of one fund. Each fund has its own distinct investment objectives and policies. Income, gains and losses, whether or not realized, of a fund are credited to or charged against the corresponding subaccount of Separate Account EQ without regard to any other income, gains or losses of the Company. Assets equal to the reserves and other Contract liabilities with respect to each are not chargeable with liabilities arising out of any other business of the Company. They may, however, be subject to liabilities arising from subaccounts whose assets we attribute to other variable annuity Contracts supported by Separate Account EQ. If the assets in Separate Account EQ exceed the required reserves and other liabilities, we may transfer the excess to our general account. When we deduct the fees we charge for the Contract, these would constitute excess assets that we would transfer to the general account. We are obligated to pay all benefits and make all payments provided under the Contracts and will keep Separate Account EQ fully funded to cover such liabilities.
Services
Safekeeping of Assets. The Company acts as its own custodian for Separate Account EQ.
Experts. The financial statements of Separate Account EQ as of December 31, 2023, and the financial statements of the Company as of December 31, 2023, 2022, and 2021, and for each of the three years in the period ended December 31, 2023, have been audited by Ernst & Young LLP, an independent registered public accounting firm, with respect to Separate Account EQ, and Ernst & Young LLP, independent auditors, with respect to the Company as set forth in their reports thereon appearing elsewhere herein. Such financial statements have been included herein in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
The primary business address of Ernst & Young LLP is 2005 Market Street, Philadelphia, Pennsylvania 19103.
Distribution of Contracts. The Contracts are offered solely to owners of Accumulator® Series variable annuity contracts issued by Equitable Financial Life Insurance Company (“EFLIC Contracts”) in connection with the Company’s assumption reinsurance of the EFLIC Contracts. The Contracts are not offered for sale to any other prospective purchasers. We offer the Contracts on a continuous basis. However, we reserve the right to discontinue the exchange offer at any time.
The EFLIC Contracts were initially distributed by both Equitable Advisors and Equitable Distributors. Each is registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934 (the “Securities Exchange Act”) and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Upon novation of the EFLIC Contracts to the Contracts issued by the Company, our sister company, Directed Services LLC (“DSL”), whose principal address is 1475 Dunwoody Drive, Suite 200, West Chester, Pennsylvania 19380 will become the principal underwriter/distributor of the Contracts. DSL is also the principal underwriter/distributor for other variable contracts issued by the Company. DSL is registered with the SEC as a broker/dealer under the Securities Exchange Act, and is a member of FINRA.
2
DSL does not retain any commissions or compensation paid to it by the Company for distribution of the Contracts. As part of the exchange offer, DSL entered into agreements with both Equitable Advisors and Equitable Distributors and other unaffiliated broker/dealers who sold the EFLIC Contracts through their registered representatives and who are licensed to sell securities and variable insurance products (“selling firms”). The selling firms are also registered with the SEC and are FINRA member firms. DSL pays selling firms compensation for the past promotion and sale of the EFLIC Contracts.
For the years ended 2023, 2022 and 2021 commissions paid by the Company to DSL related to sales of variable contracts, other than the Contracts, equaled $101,023,948, $113,539,245, and $142,771,803, respectively. All commissions received by the distributor were passed through to the broker-dealers who sold the variable contracts.
Under a pricing agreement, the Company receives a monthly fee from DSL based on annual contractual rates by fund. This fee, calculated as a percentage of average assets in the variable separate accounts attributable to the Company’s variable contracts, other than the Contracts, was $37,079,472, $40,361,772, and $52,527,065 for the years ended 2023, 2022 and 2021, respectively.
Other Information
Registration statements have been filed with the SEC under the 1933 Act, as amended, with respect to the Contracts discussed in this SAI. Not all of the information set forth in the registration statements, amendments and exhibits thereto has been included in this SAI. Statements contained in this SAI concerning the content of the Contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC.
3
Financial Statements
Included in this Statement of Additional Information are the financial statements of Separate Account EQ and the Company, as follows:
| • | Financial Statements of Separate Account EQ: |
| ○ | Report of Independent Registered Public Accounting Firm |
| ○ | Statements of Assets and Liabilities as of December 31, 2023 |
| ○ | Statements of Operations for the year ended December 31, 2023 |
| ○ | Statements of Changes in Net Assets for the years ended December 31, 2023 and 2022 |
| ○ | Notes to Financial Statements |
| • | Financial Statements of Venerable Insurance and Annuity Company: |
| ○ | Report of Independent Auditors |
| ○ | Balance Sheets - as of December 31, 2023 and 2022 |
| ○ | Statements of Operations - for the years ended December 31, 2023, 2022 and 2021 |
| ○ | Statements of Changes in Capital and Surplus - for the years ended December 31, 2023, 2022 and 2021 |
| ○ | Statements of Cash Flows - for the years ended December 31, 2023, 2022 and 2021 |
| ○ | Notes to Financial Statements |
4
FINANCIAL STATEMENTS
Venerable
Insurance and Annuity Company
Separate
Account EQ
For
the years ended December
31, 2023 and 2022
with
Report of Independent Auditors
This page intentionally left blank.
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Financial Statements |
|
Year Ended December 31, 2023 |
Contents
This page intentionally left blank.
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
BlackRock Global Allocation V.I. Fund - Class III |
Columbia VP - Small Cap Value Fund - Class 2 |
Franklin Multi-Asset Variable Conservative Growth Fund |
Franklin Multi-Asset Variable Growth Fund |
Franklin Multi-Asset Variable Moderate Growth Fund | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
140
|
$ |
75
|
$ |
6,150
|
$ |
4,077
|
$ |
4,404
| ||||
|
Total assets |
|
140
|
|
75
|
|
6,150
|
|
4,077
|
|
4,404
| ||||
|
Net assets |
$ |
140
|
$ |
75
|
$ |
6,150
|
$ |
4,077
|
$ |
4,404
| ||||
|
Total number of mutual fund shares |
|
10,742
|
|
5,849
|
|
426,859
|
|
304,252
|
|
326,774
| ||||
|
Cost of mutual fund shares |
$ |
151
|
$ |
79
|
$ |
5,616
|
$ |
4,266
|
$ |
4,195
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
3 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Legg Mason Western Asset Core Plus VIT Portfolio - Class I |
Voya Intermediate Bond Portfolio - Class S |
Voya Balanced Income Portfolio - Service Class |
Voya Global Perspectives® Portfolio - Class A |
Voya Government Liquid Assets Portfolio - Service Class | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
1,208
|
$ |
1,845
|
$ |
465
|
$ |
16
|
$ |
4,692
| ||||
|
Total assets |
|
1,208
|
|
1,845
|
|
465
|
|
16
|
|
4,692
| ||||
|
Net assets |
$ |
1,208
|
$ |
1,845
|
$ |
465
|
$ |
16
|
$ |
4,692
| ||||
|
Total number of mutual fund shares |
|
244,050
|
|
169,797
|
|
51,246
|
|
1,942
|
|
4,692,877
| ||||
|
Cost of mutual fund shares |
$ |
1,414
|
$ |
2,154
|
$ |
508
|
$ |
22
|
$ |
4,693
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
4 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya High Yield Portfolio - Service Class |
Voya Large Cap Growth Portfolio - Adviser Class |
Voya Large Cap Growth Portfolio - Service Class |
Voya Limited Maturity Bond Portfolio - Service Class |
Voya Retirement Conservative Portfolio - Adviser Class | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
613
|
$ |
2,367
|
$ |
13,395
|
$ |
652
|
$ |
1,177
| ||||
|
Total assets |
|
613
|
|
2,367
|
|
13,395
|
|
652
|
|
1,177
| ||||
|
Net assets |
$ |
613
|
$ |
2,367
|
$ |
13,395
|
$ |
652
|
$ |
1,177
| ||||
|
Total number of mutual fund shares |
|
70,880
|
|
224,603
|
|
1,065,746
|
|
68,279
|
|
150,568
| ||||
|
Cost of mutual fund shares |
$ |
667
|
$ |
2,787
|
$ |
15,054
|
$ |
692
|
$ |
1,326
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
5 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Retirement Growth Portfolio - Adviser Class |
Voya Retirement Moderate Growth Portfolio - Adviser Class |
Voya Retirement Moderate Portfolio - Adviser Class |
Voya U.S. Stock Index Portfolio - Service Class |
VY® BlackRock Inflation Protected Bond Portfolio - Service Class | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
1,876
|
$ |
934
|
$ |
1,304
|
$ |
234
|
$ |
267
| ||||
|
Total assets |
|
1,876
|
|
934
|
|
1,304
|
|
234
|
|
267
| ||||
|
Net assets |
$ |
1,876
|
$ |
934
|
$ |
1,304
|
$ |
234
|
$ |
267
| ||||
|
Total number of mutual fund shares |
|
165,410
|
|
89,781
|
|
134,279
|
|
13,350
|
|
29,283
| ||||
|
Cost of mutual fund shares |
$ |
2,014
|
$ |
1,023
|
$ |
1,475
|
$ |
222
|
$ |
300
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
6 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
VY CBRE® Global Real Estate Portfolio - Class S |
VY® CBRE Real Estate Portfolio - Class S |
VY® Invesco Growth and Income Portfolio - Service Class |
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class |
VY® Morgan Stanley Global Franchise Portfolio - Service Class | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
39
|
$ |
876
|
$ |
7,328
|
$ |
653
|
$ |
546
| ||||
|
Total assets |
|
39
|
|
876
|
|
7,328
|
|
653
|
|
546
| ||||
|
Net assets |
$ |
39
|
$ |
876
|
$ |
7,328
|
$ |
653
|
$ |
546
| ||||
|
Total number of mutual fund shares |
|
3,779
|
|
31,185
|
|
333,109
|
|
53,043
|
|
34,376
| ||||
|
Cost of mutual fund shares |
$ |
40
|
$ |
862
|
$ |
7,552
|
$ |
873
|
$ |
565
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
7 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class |
Voya International High Dividend Low Volatility Portfolio - Service Class |
Voya Solution Moderately Aggressive Portfolio - Service Class |
VY® Columbia Small Cap Value II Portfolio - Service Class |
VY® Invesco Equity and Income Portfolio - Service Class | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
12,044
|
$ |
1,485
|
$ |
87
|
$ |
78
|
$ |
17,315
| ||||
|
Total assets |
|
12,044
|
|
1,485
|
|
87
|
|
78
|
|
17,315
| ||||
|
Net assets |
$ |
12,044
|
$ |
1,485
|
$ |
87
|
$ |
78
|
$ |
17,315
| ||||
|
Total number of mutual fund shares |
|
461,852
|
|
150,421
|
|
7,852
|
|
4,617
|
|
419,087
| ||||
|
Cost of mutual fund shares |
$ |
12,346
|
$ |
1,541
|
$ |
93
|
$ |
73
|
$ |
18,367
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
8 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
VY® Invesco Equity and Income Portfolio - Service 2 Class |
Voya Global Insights Portfolio - Service Class |
VY® JPMorgan Mid Cap Value Portfolio - Service Class |
Voya Global High Dividend Low Volatility Portfolio - Class S |
Voya Index Plus LargeCap Portfolio - Class S | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
692
|
$ |
219
|
$ |
46
|
$ |
777
|
$ |
78
| ||||
|
Total assets |
|
692
|
|
219
|
|
46
|
|
777
|
|
78
| ||||
|
Net assets |
$ |
692
|
$ |
219
|
$ |
46
|
$ |
777
|
$ |
78
| ||||
|
Total number of mutual fund shares |
|
17,100
|
|
13,166
|
|
3,091
|
|
70,294
|
|
3,095
| ||||
|
Cost of mutual fund shares |
$ |
740
|
$ |
236
|
$ |
50
|
$ |
709
|
$ |
73
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
9 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Index Plus MidCap Portfolio - Class S |
Voya Index Plus SmallCap Portfolio - Class S |
Voya International Index Portfolio - Class A |
Voya International Index Portfolio - Class S |
Voya Russell™ Large Cap Growth Index Portfolio - Class I | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
91
|
$ |
114
|
$ |
846
|
$ |
74
|
$ |
8,790
| ||||
|
Total assets |
|
91
|
|
114
|
|
846
|
|
74
|
|
8,790
| ||||
|
Net assets |
$ |
91
|
$ |
114
|
$ |
846
|
$ |
74
|
$ |
8,790
| ||||
|
Total number of mutual fund shares |
|
4,828
|
|
5,284
|
|
77,943
|
|
6,700
|
|
262,251
| ||||
|
Cost of mutual fund shares |
$ |
89
|
$ |
109
|
$ |
747
|
$ |
64
|
$ |
8,334
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
10 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S |
Voya Russell™ Large Cap Index Portfolio - Class S |
Voya Russell™ Large Cap Value Index Portfolio - Class I |
Voya Russell™ Large Cap Value Index Portfolio - Class S |
Voya Russell™ Mid Cap Growth Index Portfolio - Class S | |||||||||
|
Assets |
| |||||||||||||
|
Investments in mutual funds at fair value |
$ |
1,176
|
$ |
34,585
|
$ |
7,168
|
$ |
3,576
|
$ |
33,639
| ||||
|
Total assets |
|
1,176
|
|
34,585
|
|
7,168
|
|
3,576
|
|
33,639
| ||||
|
Net assets |
$ |
1,176
|
$ |
34,585
|
$ |
7,168
|
$ |
3,576
|
$ |
33,639
| ||||
|
Total number of mutual fund shares |
|
18,635
|
|
1,041,182
|
|
251,803
|
|
126,921
|
|
863,737
| ||||
|
Cost of mutual fund shares |
$ |
853
|
$ |
16,154
|
$ |
5,120
|
$ |
3,203
|
$ |
35,723
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
11 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Assets and Liabilities |
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Russell™ Mid Cap Index Portfolio - Class S |
Voya Russell™ Small Cap Index Portfolio - Class S |
Voya Small Company Portfolio - Class S |
Voya U.S. Bond Index Portfolio - Class S | |||||||
|
Assets |
| ||||||||||
|
Investments in mutual funds at fair value |
$ |
209
|
$ |
675
|
$ |
91
|
$ |
194
| |||
|
Total assets |
|
209
|
|
675
|
|
91
|
|
194
| |||
|
Net assets |
$ |
209
|
$ |
675
|
$ |
91
|
$ |
194
| |||
|
Total number of mutual fund shares |
|
19,159
|
|
49,569
|
|
6,311
|
|
21,128
| |||
|
Cost of mutual fund shares |
$ |
222
|
$ |
658
|
$ |
99
|
$ |
225
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
12 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
BlackRock Global Allocation V.I. Fund - Class III |
Columbia VP - Small Cap Value Fund - Class 2 |
Franklin Multi-Asset Variable Conservative Growth Fund |
Franklin Multi-Asset Variable Growth Fund |
Franklin Multi-Asset Variable Moderate Growth Fund | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
3
|
$ |
—
|
$ |
138
|
$ |
46
|
$ |
75
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
3
|
|
1
|
|
83
|
|
55
|
|
62
| ||||
|
Total expenses |
|
3
|
|
1
|
|
83
|
|
55
|
|
62
| ||||
|
Net investment income (loss) |
|
—
|
|
(1
)
|
|
55
|
|
(9
)
|
|
13
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(17
)
|
|
(2
)
|
|
16
|
|
(79
)
|
|
(3
)
| ||||
|
Capital gains distributions |
|
—
|
|
5
|
|
—
|
|
178
|
|
119
| ||||
|
Total
realized gain (loss) on investments and |
|
(17
)
|
|
3
|
|
16
|
|
99
|
|
116
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
34
|
|
10
|
|
656
|
|
561
|
|
548
| ||||
|
Net
realized and unrealized gain (loss) on |
|
17
|
|
13
|
|
672
|
|
660
|
|
664
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
17
|
$ |
12
|
$ |
727
|
$ |
651
|
$ |
677
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
13 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
Legg Mason Western Asset Core Plus VIT Portfolio - Class I |
Voya Intermediate Bond Portfolio - Class S |
Voya Balanced Income Portfolio - Service Class |
Voya Global Perspectives® Portfolio - Class A |
Voya Government Liquid Assets Portfolio - Service Class | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
45
|
$ |
75
|
$ |
11
|
$ |
1
|
$ |
211
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
17
|
|
27
|
|
6
|
|
—
|
|
65
| ||||
|
Total expenses |
|
17
|
|
27
|
|
6
|
|
—
|
|
65
| ||||
|
Net investment income (loss) |
|
28
|
|
48
|
|
5
|
|
1
|
|
146
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(25
)
|
|
(102
)
|
|
(25
)
|
|
—
|
|
—
| ||||
|
Capital gains distributions |
|
—
|
|
—
|
|
—
|
|
1
|
|
—
| ||||
|
Total
realized gain (loss) on investments and |
|
(25
)
|
|
(102
)
|
|
(25
)
|
|
1
|
|
—
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
57
|
|
153
|
|
63
|
|
—
|
|
—
| ||||
|
Net
realized and unrealized gain (loss) on |
|
32
|
|
51
|
|
38
|
|
1
|
|
—
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
60
|
$ |
99
|
$ |
43
|
$ |
2
|
$ |
146
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
14 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya High Yield Portfolio - Service Class |
Voya Large Cap Growth Portfolio - Adviser Class |
Voya Large Cap Growth Portfolio - Service Class |
Voya Limited Maturity Bond Portfolio - Service Class |
Voya Retirement Conservative Portfolio - Adviser Class | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
39
|
$ |
—
|
$ |
—
|
$ |
26
|
$ |
23
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
9
|
|
29
|
|
178
|
|
10
|
|
16
| ||||
|
Total expenses |
|
9
|
|
29
|
|
178
|
|
10
|
|
16
| ||||
|
Net investment income (loss) |
|
30
|
|
(29
)
|
|
(178
)
|
|
16
|
|
7
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(14
)
|
|
(130
)
|
|
(1,648
)
|
|
(12
)
|
|
(15
)
| ||||
|
Capital gains distributions |
|
—
|
|
—
|
|
—
|
|
—
|
|
22
| ||||
|
Total
realized gain (loss) on investments and |
|
(14
)
|
|
(130
)
|
|
(1,648
)
|
|
(12
)
|
|
7
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
43
|
|
765
|
|
5,662
|
|
17
|
|
64
| ||||
|
Net
realized and unrealized gain (loss) on |
|
29
|
|
635
|
|
4,014
|
|
5
|
|
71
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
59
|
$ |
606
|
$ |
3,836
|
$ |
21
|
$ |
78
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
15 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Retirement Growth Portfolio - Adviser Class |
Voya Retirement Moderate Growth Portfolio - Adviser Class |
Voya Retirement Moderate Portfolio - Adviser Class |
Voya U.S. Stock Index Portfolio - Service Class |
VY® BlackRock Inflation Protected Bond Portfolio - Service Class | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
25
|
$ |
12
|
$ |
20
|
$ |
3
|
$ |
9
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
24
|
|
12
|
|
17
|
|
3
|
|
4
| ||||
|
Total expenses |
|
24
|
|
12
|
|
17
|
|
3
|
|
4
| ||||
|
Net investment income (loss) |
|
1
|
|
—
|
|
3
|
|
—
|
|
5
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(11
)
|
|
(10
)
|
|
(22
)
|
|
(1
)
|
|
(4
)
| ||||
|
Capital gains distributions |
|
143
|
|
65
|
|
57
|
|
21
|
|
—
| ||||
|
Total
realized gain (loss) on investments and |
|
132
|
|
55
|
|
35
|
|
20
|
|
(4
)
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
128
|
|
57
|
|
76
|
|
30
|
|
5
| ||||
|
Net
realized and unrealized gain (loss) on |
|
260
|
|
112
|
|
111
|
|
50
|
|
1
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
261
|
$ |
112
|
$ |
114
|
$ |
50
|
$ |
6
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
16 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
VY® CBRE Global Real Estate Portfolio - Class S |
VY® CBRE Real Estate Portfolio - Class S |
VY® Invesco Growth and Income Portfolio - Service Class |
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class |
VY® Morgan Stanley Global Franchise Portfolio - Service Class | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
1
|
$ |
20
|
$ |
129
|
$ |
11
|
$ |
3
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
1
|
|
12
|
|
101
|
|
9
|
|
8
| ||||
|
Total expenses |
|
1
|
|
12
|
|
101
|
|
9
|
|
8
| ||||
|
Net investment income (loss) |
|
—
|
|
8
|
|
28
|
|
2
|
|
(5
)
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(1
)
|
|
—
|
|
(100
)
|
|
(19
)
|
|
(6
)
| ||||
|
Capital gains distributions |
|
—
|
|
51
|
|
483
|
|
—
|
|
41
| ||||
|
Total
realized gain (loss) on investments and |
|
(1
)
|
|
51
|
|
383
|
|
(19
)
|
|
35
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
4
|
|
39
|
|
326
|
|
48
|
|
40
| ||||
|
Net
realized and unrealized gain (loss) on |
|
3
|
|
90
|
|
709
|
|
29
|
|
75
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
3
|
$ |
98
|
$ |
737
|
$ |
31
|
$ |
70
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
17 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class |
Voya International High Dividend Low Volatility Portfolio - Service Class |
Voya Solution Moderately Aggressive Portfolio - Service Class |
VY® Columbia Small Cap Value II Portfolio - Service Class |
VY® Invesco Equity and Income Portfolio - Service Class | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
235
|
$ |
64
|
$ |
3
|
$ |
—
|
$ |
342
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
169
|
|
23
|
|
1
|
|
1
|
|
245
| ||||
|
Total expenses |
|
169
|
|
23
|
|
1
|
|
1
|
|
245
| ||||
|
Net investment income (loss) |
|
66
|
|
41
|
|
2
|
|
(1
)
|
|
97
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(130
)
|
|
(45
)
|
|
(3
)
|
|
—
|
|
(266
)
| ||||
|
Capital gains distributions |
|
1,158
|
|
—
|
|
5
|
|
5
|
|
963
| ||||
|
Total
realized gain (loss) on investments and |
|
1,028
|
|
(45
)
|
|
2
|
|
5
|
|
697
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
796
|
|
198
|
|
10
|
|
4
|
|
584
| ||||
|
Net
realized and unrealized gain (loss) on |
|
1,824
|
|
153
|
|
12
|
|
9
|
|
1,281
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
1,890
|
$ |
194
|
$ |
14
|
$ |
8
|
$ |
1,378
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
18 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
VY® Invesco Equity and Income Portfolio - Service 2 Class |
Voya Global Insights Portfolio - Service Class |
VY® JPMorgan Mid Cap Value Portfolio - Service Class |
Voya Global High Dividend Low Volatility Portfolio - Class S |
Voya Index Plus LargeCap Portfolio - Class S | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
13
|
$ |
—
|
$ |
—
|
$ |
21
|
$ |
1
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
9
|
|
3
|
|
1
|
|
11
|
|
1
| ||||
|
Total expenses |
|
9
|
|
3
|
|
1
|
|
11
|
|
1
| ||||
|
Net investment income (loss) |
|
4
|
|
(3
)
|
|
(1
)
|
|
10
|
|
—
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(3
)
|
|
(13
)
|
|
(3
)
|
|
9
|
|
(3
)
| ||||
|
Capital gains distributions |
|
37
|
|
28
|
|
4
|
|
27
|
|
2
| ||||
|
Total
realized gain (loss) on investments and |
|
34
|
|
15
|
|
1
|
|
36
|
|
(1
)
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
15
|
|
45
|
|
2
|
|
(10
)
|
|
18
| ||||
|
Net
realized and unrealized gain (loss) on |
|
49
|
|
60
|
|
3
|
|
26
|
|
17
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
53
|
$ |
57
|
$ |
2
|
$ |
36
|
$ |
17
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
19 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Index Plus MidCap Portfolio - Class S |
Voya Index Plus SmallCap Portfolio - Class S |
Voya International Index Portfolio - Class A |
Voya International Index Portfolio - Class S |
Voya Russell™ Large Cap Growth Index Portfolio - Class I | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
1
|
$ |
1
|
$ |
40
|
$ |
3
|
$ |
104
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
2
|
|
2
|
|
12
|
|
1
|
|
115
| ||||
|
Total expenses |
|
2
|
|
2
|
|
12
|
|
1
|
|
115
| ||||
|
Net investment income (loss) |
|
(1
)
|
|
(1
)
|
|
28
|
|
2
|
|
(11
)
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
(6
)
|
|
(9
)
|
|
11
|
|
1
|
|
(50
)
| ||||
|
Capital gains distributions |
|
5
|
|
5
|
|
—
|
|
—
|
|
—
| ||||
|
Total
realized gain (loss) on investments and |
|
(1
)
|
|
(4
)
|
|
11
|
|
1
|
|
(50
)
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
16
|
|
19
|
|
84
|
|
7
|
|
2,045
| ||||
|
Net
realized and unrealized gain (loss) on |
|
15
|
|
15
|
|
95
|
|
8
|
|
1,995
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
14
|
$ |
14
|
$ |
123
|
$ |
10
|
$ |
1,984
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
20 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S |
Voya Russell™ Large Cap Index Portfolio - Class S |
Voya Russell™ Large Cap Value Index Portfolio - Class I |
Voya Russell™ Large Cap Value Index Portfolio - Class S |
Voya Russell™ Mid Cap Growth Index Portfolio - Class S | |||||||||
|
Net investment income (loss) |
| |||||||||||||
|
Investment Income: |
| |||||||||||||
|
Dividends |
$ |
3
|
$ |
341
|
$ |
151
|
$ |
75
|
$ |
67
| ||||
|
Expenses: |
| |||||||||||||
|
Mortality and expense risk charges |
|
15
|
|
463
|
|
100
|
|
52
|
|
457
| ||||
|
Total expenses |
|
15
|
|
463
|
|
100
|
|
52
|
|
457
| ||||
|
Net investment income (loss) |
|
(12
)
|
|
(122
)
|
|
51
|
|
23
|
|
(390
)
| ||||
|
Realized and unrealized gain (loss) |
| |||||||||||||
|
Net realized gain (loss) on investments |
|
47
|
|
2,384
|
|
224
|
|
33
|
|
(1,269
)
| ||||
|
Capital gains distributions |
|
57
|
|
—
|
|
—
|
|
—
|
|
—
| ||||
|
Total
realized gain (loss) on investments and |
|
104
|
|
2,384
|
|
224
|
|
33
|
|
(1,269
)
| ||||
|
Net
unrealized appreciation (depreciation) of |
|
301
|
|
5,639
|
|
310
|
|
227
|
|
8,429
| ||||
|
Net
realized and unrealized gain (loss) on |
|
405
|
|
8,023
|
|
534
|
|
260
|
|
7,160
| ||||
|
Net
increase (decrease) in net assets resulting |
$ |
393
|
$ |
7,901
|
$ |
585
|
$ |
283
|
$ |
6,770
| ||||
|
The accompanying notes are an integral part of these financial statements. |
|
21 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Operations |
|
For the Year Ended December 31, 2023 |
|
(Dollars in thousands) |
|
|
Voya Russell™ Mid Cap Index Portfolio - Class S |
Voya Russell™ Small Cap Index Portfolio - Class S |
Voya Small Company Portfolio - Class S |
Voya U.S. Bond Index Portfolio - Class S | |||||||
|
Net investment income (loss) |
| ||||||||||
|
Investment Income: |
| ||||||||||
|
Dividends |
$ |
3
|
$ |
9
|
$ |
—
|
$ |
6
| |||
|
Expenses: |
| ||||||||||
|
Mortality and expense risk charges |
|
3
|
|
8
|
|
1
|
|
3
| |||
|
Total expenses |
|
3
|
|
8
|
|
1
|
|
3
| |||
|
Net investment income (loss) |
|
—
|
|
1
|
|
(1
)
|
|
3
| |||
|
Realized and unrealized gain (loss) |
| ||||||||||
|
Net realized gain (loss) on investments |
|
(13
)
|
|
(5
)
|
|
(2
)
|
|
(2
)
| |||
|
Capital gains distributions |
|
20
|
|
23
|
|
—
|
|
—
| |||
|
Total
realized gain (loss) on investments and |
|
7
|
|
18
|
|
(2
)
|
|
(2
)
| |||
|
Net
unrealized appreciation (depreciation) of |
|
24
|
|
71
|
|
16
|
|
4
| |||
|
Net
realized and unrealized gain (loss) on |
|
31
|
|
89
|
|
14
|
|
2
| |||
|
Net
increase (decrease) in net assets resulting |
$ |
31
|
$ |
90
|
$ |
13
|
$ |
5
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
22 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
BlackRock Global Allocation V.I. Fund - Class III |
Columbia VP - Small Cap Value Fund - Class 2 |
Franklin Multi-Asset Variable Conservative Growth Fund |
Franklin Multi-Asset Variable Growth Fund | |||||||
|
Net Assets at January 1, 2022 |
$ |
406
|
$ |
103
|
$ |
7,100
|
$ |
4,886
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(4
)
|
|
(1
)
|
|
47
|
|
71
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
(9
)
|
|
24
|
|
343
|
|
321
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(51
)
|
|
(33
)
|
|
(1,472
)
|
|
(1,164
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(64
)
|
|
(10
)
|
|
(1,082
)
|
|
(772
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
—
|
|
3
|
|
17
| |||
|
Death Benefits |
|
(5
)
|
|
—
|
|
(78
)
|
|
(27
)
| |||
|
Surrenders and withdrawals |
|
(95
)
|
|
(27
)
|
|
(213
)
|
|
(184
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
—
|
|
(3
)
|
|
(4
)
| |||
|
Transfers between Divisions (including fixed account), net |
|
(3
)
|
|
—
|
|
10
|
|
(29
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(103
)
|
|
(27
)
|
|
(281
)
|
|
(227
)
| |||
|
Total increase (decrease) in net assets |
|
(167
)
|
|
(37
)
|
|
(1,363
)
|
|
(999
)
| |||
|
Net assets at December 31, 2022 |
|
239
|
|
66
|
|
5,737
|
|
3,887
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
—
|
|
(1
)
|
|
55
|
|
(9
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
(17
)
|
|
3
|
|
16
|
|
99
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
34
|
|
10
|
|
656
|
|
561
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
17
|
|
12
|
|
727
|
|
651
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
—
|
|
3
|
|
6
| |||
|
Death Benefits |
|
—
|
|
(3
)
|
|
(74
)
|
|
(6
)
| |||
|
Surrenders and withdrawals |
|
(101
)
|
|
(1
)
|
|
(245
)
|
|
(456
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
—
|
|
(3
)
|
|
(4
)
| |||
|
Transfers between Divisions |
|
(15
)
|
|
1
|
|
5
|
|
(1
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(116
)
|
|
(3
)
|
|
(314
)
|
|
(461
)
| |||
|
Total increase (decrease) in net assets |
|
(99
)
|
|
9
|
|
413
|
|
190
| |||
|
Net assets at December 31, 2023 |
$ |
140
|
$ |
75
|
$ |
6,150
|
$ |
4,077
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
23 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Franklin Multi-Asset Variable Moderate Growth Fund |
Legg Mason Western Asset Core Plus VIT Portfolio - Class I |
Voya Intermediate Bond Portfolio - Class S |
Voya Balanced Income Portfolio - Service Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
6,005
|
$ |
1,727
|
$ |
2,802
|
$ |
806
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
16
|
|
7
|
|
27
|
|
4
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
354
|
|
(22
)
|
|
(49
)
|
|
21
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(1,275
)
|
|
(290
)
|
|
(408
)
|
|
(125
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(905
)
|
|
(305
)
|
|
(430
)
|
|
(100
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
3
|
|
—
|
|
13
|
|
—
| |||
|
Death Benefits |
|
(13
)
|
|
(12
)
|
|
(43
)
|
|
(20
)
| |||
|
Surrenders and withdrawals |
|
(583
)
|
|
(161
)
|
|
(226
)
|
|
(242
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(5
)
|
|
(1
)
|
|
(2
)
|
|
—
| |||
|
Transfers between Divisions (including fixed account), net |
|
—
|
|
1
|
|
(43
)
|
|
(1
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(598
)
|
|
(173
)
|
|
(301
)
|
|
(263
)
| |||
|
Total increase (decrease) in net assets |
|
(1,503
)
|
|
(478
)
|
|
(731
)
|
|
(363
)
| |||
|
Net assets at December 31, 2022 |
|
4,502
|
|
1,249
|
|
2,071
|
|
443
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
13
|
|
28
|
|
48
|
|
5
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
116
|
|
(25
)
|
|
(102
)
|
|
(25
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
548
|
|
57
|
|
153
|
|
63
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
677
|
|
60
|
|
99
|
|
43
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
3
|
|
—
|
|
29
|
|
(1
)
| |||
|
Death Benefits |
|
(109
)
|
|
(27
)
|
|
(8
)
|
|
(9
)
| |||
|
Surrenders and withdrawals |
|
(664
)
|
|
(75
)
|
|
(274
)
|
|
(13
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(4
)
|
|
(1
)
|
|
(2
)
|
|
—
| |||
|
Transfers between Divisions |
|
(1
)
|
|
2
|
|
(70
)
|
|
2
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(775
)
|
|
(101
)
|
|
(325
)
|
|
(21
)
| |||
|
Total increase (decrease) in net assets |
|
(98
)
|
|
(41
)
|
|
(226
)
|
|
22
| |||
|
Net assets at December 31, 2023 |
$ |
4,404
|
$ |
1,208
|
$ |
1,845
|
$ |
465
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
24 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya Global Perspectives® Portfolio - Class A |
Voya Government Liquid Assets Portfolio - Service Class |
Voya High Yield Portfolio - Service Class |
Voya Large Cap Growth Portfolio - Adviser Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
19
|
$ |
5,520
|
$ |
827
|
$ |
2,866
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
—
|
|
(4
)
|
|
28
|
|
(30
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
1
|
|
—
|
|
(16
)
|
|
601
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(5
)
|
|
—
|
|
(123
)
|
|
(1,468
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(4
)
|
|
(4
)
|
|
(111
)
|
|
(897
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
38
|
|
—
|
|
59
| |||
|
Death Benefits |
|
—
|
|
(39
)
|
|
(17
)
|
|
(5
)
| |||
|
Surrenders and withdrawals |
|
—
|
|
(894
)
|
|
(95
)
|
|
(281
)
| |||
|
Contract Charges |
|
—
|
|
(1
)
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(6
)
|
|
(1
)
|
|
(1
)
| |||
|
Transfers between Divisions (including fixed account), net |
|
—
|
|
510
|
|
14
|
|
14
| |||
|
Increase
(decrease) in net assets derived from principal |
|
—
|
|
(392
)
|
|
(99
)
|
|
(214
)
| |||
|
Total increase (decrease) in net assets |
|
(4
)
|
|
(396
)
|
|
(210
)
|
|
(1,111
)
| |||
|
Net assets at December 31, 2022 |
|
15
|
|
5,124
|
|
617
|
|
1,755
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
1
|
|
146
|
|
30
|
|
(29
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
1
|
|
—
|
|
(14
)
|
|
(130
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
—
|
|
—
|
|
43
|
|
765
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
2
|
|
146
|
|
59
|
|
606
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
34
|
|
—
|
|
3
| |||
|
Death Benefits |
|
—
|
|
(471
)
|
|
(2
)
|
|
(10
)
| |||
|
Surrenders and withdrawals |
|
—
|
|
(586
)
|
|
(51
)
|
|
(89
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(5
)
|
|
—
|
|
(1
)
| |||
|
Transfers between Divisions |
|
(1
)
|
|
450
|
|
(10
)
|
|
103
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(1
)
|
|
(578
)
|
|
(63
)
|
|
6
| |||
|
Total increase (decrease) in net assets |
|
1
|
|
(432
)
|
|
(4
)
|
|
612
| |||
|
Net assets at December 31, 2023 |
$ |
16
|
$ |
4,692
|
$ |
613
|
$ |
2,367
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
25 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya Large Cap Growth Portfolio - Service Class |
Voya Limited Maturity Bond Portfolio - Service Class |
Voya Retirement Conservative Portfolio - Adviser Class |
Voya Retirement Growth Portfolio - Adviser Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
18,810
|
$ |
940
|
$ |
1,495
|
$ |
2,327
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(199
)
|
|
2
|
|
9
|
|
(6
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
4,194
|
|
(4
)
|
|
97
|
|
246
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(9,781
)
|
|
(54
)
|
|
(312
)
|
|
(625
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(5,786
)
|
|
(56
)
|
|
(206
)
|
|
(385
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
7
|
|
—
|
|
2
|
|
16
| |||
|
Death Benefits |
|
(319
)
|
|
(20
)
|
|
(9
)
|
|
(30
)
| |||
|
Surrenders and withdrawals |
|
(924
)
|
|
(62
)
|
|
(116
)
|
|
(307
)
| |||
|
Contract Charges |
|
(1
)
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(11
)
|
|
(1
)
|
|
(1
)
|
|
(2
)
| |||
|
Transfers between Divisions (including fixed account), net |
|
(84
)
|
|
(4
)
|
|
(132
)
|
|
(3
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(1,332
)
|
|
(87
)
|
|
(256
)
|
|
(326
)
| |||
|
Total increase (decrease) in net assets |
|
(7,118
)
|
|
(143
)
|
|
(462
)
|
|
(711
)
| |||
|
Net assets at December 31, 2022 |
|
11,692
|
|
797
|
|
1,033
|
|
1,616
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(178
)
|
|
16
|
|
7
|
|
1
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
(1,648
)
|
|
(12
)
|
|
7
|
|
132
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
5,662
|
|
17
|
|
64
|
|
128
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
3,836
|
|
21
|
|
78
|
|
261
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
6
|
|
—
|
|
9
|
|
16
| |||
|
Death Benefits |
|
(897
)
|
|
(69
)
|
|
(7
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(1,143
)
|
|
(100
)
|
|
(9
)
|
|
(52
)
| |||
|
Contract Charges |
|
(1
)
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(10
)
|
|
(1
)
|
|
—
|
|
(2
)
| |||
|
Transfers between Divisions |
|
(88
)
|
|
4
|
|
73
|
|
37
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(2,133
)
|
|
(166
)
|
|
66
|
|
(1
)
| |||
|
Total increase (decrease) in net assets |
|
1,703
|
|
(145
)
|
|
144
|
|
260
| |||
|
Net assets at December 31, 2023 |
$ |
13,395
|
$ |
652
|
$ |
1,177
|
$ |
1,876
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
26 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya Retirement Moderate Growth Portfolio - Adviser Class |
Voya Retirement Moderate Portfolio - Adviser Class |
Voya U.S. Stock Index Portfolio - Service Class |
VY® BlackRock Inflation Protected Bond Portfolio - Service Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
1,055
|
$ |
1,479
|
$ |
364
|
$ |
341
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(1
)
|
|
4
|
|
(1
)
|
|
9
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
107
|
|
141
|
|
30
|
|
(1
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(287
)
|
|
(384
)
|
|
(100
)
|
|
(55
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(181
)
|
|
(239
)
|
|
(71
)
|
|
(47
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
2
|
|
—
|
|
—
|
|
—
| |||
|
Death Benefits |
|
(4
)
|
|
—
|
|
(13
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(43
)
|
|
(70
)
|
|
(13
)
|
|
(14
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(1
)
|
|
(1
)
|
|
—
|
|
—
| |||
|
Transfers between Divisions (including fixed account), net |
|
13
|
|
38
|
|
—
|
|
—
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(33
)
|
|
(33
)
|
|
(26
)
|
|
(14
)
| |||
|
Total increase (decrease) in net assets |
|
(214
)
|
|
(272
)
|
|
(97
)
|
|
(61
)
| |||
|
Net assets at December 31, 2022 |
|
841
|
|
1,207
|
|
267
|
|
280
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
—
|
|
3
|
|
—
|
|
5
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
55
|
|
35
|
|
20
|
|
(4
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
57
|
|
76
|
|
30
|
|
5
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
112
|
|
114
|
|
50
|
|
6
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
2
|
|
2
|
|
2
|
|
—
| |||
|
Death Benefits |
|
—
|
|
—
|
|
(18
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(40
)
|
|
(18
)
|
|
(3
)
|
|
(14
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(1
)
|
|
(1
)
|
|
—
|
|
—
| |||
|
Transfers between Divisions |
|
20
|
|
—
|
|
(64
)
|
|
(5
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(19
)
|
|
(17
)
|
|
(83
)
|
|
(19
)
| |||
|
Total increase (decrease) in net assets |
|
93
|
|
97
|
|
(33
)
|
|
(13
)
| |||
|
Net assets at December 31, 2023 |
$ |
934
|
$ |
1,304
|
$ |
234
|
$ |
267
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
27 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
VY® CBRE Global Real Estate Portfolio - Class S |
VY® CBRE Real Estate Portfolio - Class S |
VY® Invesco Growth and Income Portfolio - Service Class |
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
56
|
$ |
1,276
|
$ |
8,656
|
$ |
937
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
—
|
|
2
|
|
(9
)
|
|
(10
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
2
|
|
193
|
|
1,005
|
|
186
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(17
)
|
|
(541
)
|
|
(1,606
)
|
|
(427
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(15
)
|
|
(346
)
|
|
(610
)
|
|
(251
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
—
|
|
86
|
|
—
| |||
|
Death Benefits |
|
(2
)
|
|
(70
)
|
|
(116
)
|
|
(25
)
| |||
|
Surrenders and withdrawals |
|
(1
)
|
|
(39
)
|
|
(673
)
|
|
(34
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
(2
)
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(1
)
|
|
(6
)
|
|
(1
)
| |||
|
Transfers between Divisions (including fixed account), net |
|
—
|
|
9
|
|
2
|
|
16
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(3
)
|
|
(101
)
|
|
(709
)
|
|
(44
)
| |||
|
Total increase (decrease) in net assets |
|
(18
)
|
|
(447
)
|
|
(1,319
)
|
|
(295
)
| |||
|
Net assets at December 31, 2022 |
|
38
|
|
829
|
|
7,337
|
|
642
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
—
|
|
8
|
|
28
|
|
2
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
(1
)
|
|
51
|
|
383
|
|
(19
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
4
|
|
39
|
|
326
|
|
48
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
3
|
|
98
|
|
737
|
|
31
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
—
|
|
31
|
|
—
| |||
|
Death Benefits |
|
(1
)
|
|
—
|
|
(211
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(3
)
|
|
(53
)
|
|
(641
)
|
|
(15
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
(1
)
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(1
)
|
|
(5
)
|
|
(1
)
| |||
|
Transfers between Divisions |
|
2
|
|
3
|
|
81
|
|
(4
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(2
)
|
|
(51
)
|
|
(746
)
|
|
(20
)
| |||
|
Total increase (decrease) in net assets |
|
1
|
|
47
|
|
(9
)
|
|
11
| |||
|
Net assets at December 31, 2023 |
$ |
39
|
$ |
876
|
$ |
7,328
|
$ |
653
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
28 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
VY® Morgan Stanley Global Franchise Portfolio - Service Class |
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class |
Voya International High Dividend Low Volatility Portfolio - Service Class |
Voya Solution Moderately Aggressive Portfolio - Service Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
743
|
$ |
15,940
|
$ |
2,057
|
$ |
114
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(5
)
|
|
(26
)
|
|
53
|
|
2
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
46
|
|
1,713
|
|
(18
)
|
|
13
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(177
)
|
|
(3,750
)
|
|
(246
)
|
|
(37
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(136
)
|
|
(2,063
)
|
|
(211
)
|
|
(22
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
3
|
|
82
|
|
4
|
|
—
| |||
|
Death Benefits |
|
(29
)
|
|
(323
)
|
|
(9
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(67
)
|
|
(1,280
)
|
|
(103
)
|
|
(2
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(7
)
|
|
(1
)
|
|
—
| |||
|
Transfers between Divisions (including fixed account), net |
|
2
|
|
10
|
|
(10
)
|
|
(3
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(91
)
|
|
(1,518
)
|
|
(119
)
|
|
(5
)
| |||
|
Total increase (decrease) in net assets |
|
(227
)
|
|
(3,581
)
|
|
(330
)
|
|
(27
)
| |||
|
Net assets at December 31, 2022 |
|
516
|
|
12,359
|
|
1,727
|
|
87
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(5
)
|
|
66
|
|
41
|
|
2
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
35
|
|
1,028
|
|
(45
)
|
|
2
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
40
|
|
796
|
|
198
|
|
10
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
70
|
|
1,890
|
|
194
|
|
14
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
6
|
|
95
|
|
9
|
|
—
| |||
|
Death Benefits |
|
(24
)
|
|
(238
)
|
|
(304
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(20
)
|
|
(1,901
)
|
|
(138
)
|
|
(14
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(6
)
|
|
(1
)
|
|
—
| |||
|
Transfers between Divisions |
|
(2
)
|
|
(155
)
|
|
(2
)
|
|
—
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(40
)
|
|
(2,205
)
|
|
(436
)
|
|
(14
)
| |||
|
Total increase (decrease) in net assets |
|
30
|
|
(315
)
|
|
(242
)
|
|
—
| |||
|
Net assets at December 31, 2023 |
$ |
546
|
$ |
12,044
|
$ |
1,485
|
$ |
87
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
29 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
VY® Columbia Small Cap Value II Portfolio - Service Class |
VY® Invesco Equity and Income Portfolio - Service Class |
VY® Invesco Equity and Income Portfolio - Service 2 Class |
Voya Global Insights Portfolio - Service Class | |||||||
|
Net Assets at January 1, 2022 |
$ |
96
|
$ |
22,200
|
$ |
779
|
$ |
326
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(1
)
|
|
4
|
|
(1
)
|
|
(3
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
13
|
|
2,831
|
|
110
|
|
35
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(26
)
|
|
(4,814
)
|
|
(178
)
|
|
(138
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(14
)
|
|
(1,979
)
|
|
(69
)
|
|
(106
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
7
|
|
22
|
|
—
| |||
|
Death Benefits |
|
—
|
|
(399
)
|
|
—
|
|
—
| |||
|
Surrenders and withdrawals |
|
(3
)
|
|
(1,532
)
|
|
(103
)
|
|
(13
)
| |||
|
Contract Charges |
|
—
|
|
(1
)
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(14
)
|
|
—
|
|
—
| |||
|
Transfers between Divisions (including fixed account), net |
|
(1
)
|
|
(48
)
|
|
27
|
|
(1
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(4
)
|
|
(1,987
)
|
|
(54
)
|
|
(14
)
| |||
|
Total increase (decrease) in net assets |
|
(18
)
|
|
(3,966
)
|
|
(123
)
|
|
(120
)
| |||
|
Net assets at December 31, 2022 |
|
78
|
|
18,234
|
|
656
|
|
206
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(1
)
|
|
97
|
|
4
|
|
(3
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
5
|
|
697
|
|
34
|
|
15
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
4
|
|
584
|
|
15
|
|
45
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
8
|
|
1,378
|
|
53
|
|
57
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
7
|
|
4
|
|
(1
)
| |||
|
Death Benefits |
|
—
|
|
(702
)
|
|
(3
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(9
)
|
|
(1,510
)
|
|
(18
)
|
|
(37
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(13
)
|
|
—
|
|
—
| |||
|
Transfers between Divisions |
|
1
|
|
(79
)
|
|
—
|
|
(6
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(8
)
|
|
(2,297
)
|
|
(17
)
|
|
(44
)
| |||
|
Total increase (decrease) in net assets |
|
—
|
|
(919
)
|
|
36
|
|
13
| |||
|
Net assets at December 31, 2023 |
$ |
78
|
$ |
17,315
|
$ |
692
|
$ |
219
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
30 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
VY® JPMorgan Mid Cap Value Portfolio - Service Class |
Voya Global High Dividend Low Volatility Portfolio - Class S |
Voya Index Plus LargeCap Portfolio - Class S |
Voya Index Plus MidCap Portfolio - Class S | |||||||
|
Net Assets at January 1, 2022 |
$ |
90
|
$ |
980
|
$ |
152
|
$ |
134
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
—
|
|
10
|
|
(1
)
|
|
(1
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
10
|
|
38
|
|
22
|
|
26
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(19
)
|
|
(114
)
|
|
(51
)
|
|
(47
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(9
)
|
|
(66
)
|
|
(30
)
|
|
(22
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Death Benefits |
|
—
|
|
(16
)
|
|
(13
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(23
)
|
|
(56
)
|
|
(7
)
|
|
(1
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(1
)
|
|
—
|
|
—
| |||
|
Transfers between Divisions (including fixed account), net |
|
—
|
|
5
|
|
(26
)
|
|
8
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(23
)
|
|
(68
)
|
|
(46
)
|
|
7
| |||
|
Total increase (decrease) in net assets |
|
(32
)
|
|
(134
)
|
|
(76
)
|
|
(15
)
| |||
|
Net assets at December 31, 2022 |
|
58
|
|
846
|
|
76
|
|
119
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(1
)
|
|
10
|
|
—
|
|
(1
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
1
|
|
36
|
|
(1
)
|
|
(1
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
2
|
|
(10
)
|
|
18
|
|
16
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
2
|
|
36
|
|
17
|
|
14
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Death Benefits |
|
—
|
|
(5
)
|
|
—
|
|
—
| |||
|
Surrenders and withdrawals |
|
—
|
|
(80
)
|
|
(14
)
|
|
(41
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(1
)
|
|
—
|
|
—
| |||
|
Transfers between Divisions |
|
(14
)
|
|
(19
)
|
|
(1
)
|
|
(1
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(14
)
|
|
(105
)
|
|
(15
)
|
|
(42
)
| |||
|
Total increase (decrease) in net assets |
|
(12
)
|
|
(69
)
|
|
2
|
|
(28
)
| |||
|
Net assets at December 31, 2023 |
$ |
46
|
$ |
777
|
$ |
78
|
$ |
91
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
31 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya Index Plus SmallCap Portfolio - Class S |
Voya International Index Portfolio - Class A |
Voya International Index Portfolio - Class S |
Voya Russell™ Large Cap Growth Index Portfolio - Class I | |||||||
|
Net Assets at January 1, 2022 |
$ |
169
|
$ |
1,110
|
$ |
11
|
$ |
10,236
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(1
)
|
|
14
|
|
(1
)
|
|
(61
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
23
|
|
11
|
|
—
|
|
208
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(48
)
|
|
(207
)
|
|
1
|
|
(2,239
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(26
)
|
|
(182
)
|
|
—
|
|
(2,092
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
17
|
|
—
|
|
(16
)
| |||
|
Death Benefits |
|
—
|
|
(15
)
|
|
—
|
|
(117
)
| |||
|
Surrenders and withdrawals |
|
(1
)
|
|
(122
)
|
|
(24
)
|
|
(576
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
—
|
|
—
|
|
(5
)
| |||
|
Transfers between Divisions (including fixed account), net |
|
3
|
|
29
|
|
73
|
|
(1
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
2
|
|
(91
)
|
|
49
|
|
(715
)
| |||
|
Total increase (decrease) in net assets |
|
(24
)
|
|
(273
)
|
|
49
|
|
(2,807
)
| |||
|
Net assets at December 31, 2022 |
|
145
|
|
837
|
|
60
|
|
7,429
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(1
)
|
|
28
|
|
2
|
|
(11
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
(4
)
|
|
11
|
|
1
|
|
(50
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
19
|
|
84
|
|
7
|
|
2,045
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
14
|
|
123
|
|
10
|
|
1,984
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
—
|
|
1
|
|
—
|
|
—
| |||
|
Death Benefits |
|
(41
)
|
|
(1
)
|
|
(6
)
|
|
(105
)
| |||
|
Surrenders and withdrawals |
|
(4
)
|
|
(91
)
|
|
10
|
|
(514
)
| |||
|
Contract Charges |
|
—
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
—
|
|
—
|
|
(5
)
| |||
|
Transfers between Divisions |
|
—
|
|
(23
)
|
|
—
|
|
1
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(45
)
|
|
(114
)
|
|
4
|
|
(623
)
| |||
|
Total increase (decrease) in net assets |
|
(31
)
|
|
9
|
|
14
|
|
1,361
| |||
|
Net assets at December 31, 2023 |
$ |
114
|
$ |
846
|
$ |
74
|
$ |
8,790
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
32 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S |
Voya Russell™ Large Cap Index Portfolio - Class S |
Voya Russell™ Large Cap Value Index Portfolio - Class I |
Voya Russell™ Large Cap Value Index Portfolio - Class S | |||||||
|
Net Assets at January 1, 2022 |
$ |
1,630
|
$ |
42,891
|
$ |
8,780
|
$ |
4,666
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(16
)
|
|
(294
)
|
|
(3
)
|
|
(10
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
138
|
|
3,173
|
|
251
|
|
19
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(614
)
|
|
(11,774
)
|
|
(838
)
|
|
(329
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(492
)
|
|
(8,895
)
|
|
(590
)
|
|
(320
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
5
|
|
70
|
|
(4
)
|
|
75
| |||
|
Death Benefits |
|
(20
)
|
|
(329
)
|
|
(103
)
|
|
(47
)
| |||
|
Surrenders and withdrawals |
|
(100
)
|
|
(2,751
)
|
|
(667
)
|
|
(301
)
| |||
|
Contract Charges |
|
—
|
|
(1
)
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
—
|
|
(24
)
|
|
(5
)
|
|
(2
)
| |||
|
Transfers between Divisions (including fixed account), net |
|
(43
)
|
|
(68
)
|
|
(25
)
|
|
30
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(158
)
|
|
(3,103
)
|
|
(804
)
|
|
(245
)
| |||
|
Total increase (decrease) in net assets |
|
(650
)
|
|
(11,998
)
|
|
(1,394
)
|
|
(565
)
| |||
|
Net assets at December 31, 2022 |
|
980
|
|
30,893
|
|
7,386
|
|
4,101
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(12
)
|
|
(122
)
|
|
51
|
|
23
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
104
|
|
2,384
|
|
224
|
|
33
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
301
|
|
5,639
|
|
310
|
|
227
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
393
|
|
7,901
|
|
585
|
|
283
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
17
|
|
38
|
|
2
|
|
10
| |||
|
Death Benefits |
|
—
|
|
(1,559
)
|
|
(257
)
|
|
(507
)
| |||
|
Surrenders and withdrawals |
|
(205
)
|
|
(2,705
)
|
|
(544
)
|
|
(312
)
| |||
|
Contract Charges |
|
—
|
|
(1
)
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(1
)
|
|
(22
)
|
|
(4
)
|
|
(2
)
| |||
|
Transfers between Divisions |
|
(8
)
|
|
40
|
|
—
|
|
3
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(197
)
|
|
(4,209
)
|
|
(803
)
|
|
(808
)
| |||
|
Total increase (decrease) in net assets |
|
196
|
|
3,692
|
|
(218
)
|
|
(525
)
| |||
|
Net assets at December 31, 2023 |
$ |
1,176
|
$ |
34,585
|
$ |
7,168
|
$ |
3,576
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
33 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya Russell™ Mid Cap Growth Index Portfolio - Class S |
Voya Russell™ Mid Cap Index Portfolio - Class S |
Voya Russell™ Small Cap Index Portfolio - Class S |
Voya Small Company Portfolio - Class S | |||||||
|
Net Assets at January 1, 2022 |
$ |
47,134
|
$ |
391
|
$ |
898
|
$ |
101
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(491
)
|
|
(2
)
|
|
(6
)
|
|
(1
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
2,861
|
|
20
|
|
50
|
|
23
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
(15,457
)
|
|
(86
)
|
|
(238
)
|
|
(39
)
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
(13,087
)
|
|
(68
)
|
|
(194
)
|
|
(17
)
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
227
|
|
2
|
|
5
|
|
1
| |||
|
Death Benefits |
|
(337
)
|
|
(13
)
|
|
(14
)
|
|
—
| |||
|
Surrenders and withdrawals |
|
(2,263
)
|
|
(67
)
|
|
(102
)
|
|
(1
)
| |||
|
Contract Charges |
|
(2
)
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(26
)
|
|
—
|
|
—
|
|
—
| |||
|
Transfers between Divisions (including fixed account), net |
|
(175
)
|
|
4
|
|
(42
)
|
|
(3
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(2,576
)
|
|
(74
)
|
|
(153
)
|
|
(3
)
| |||
|
Total increase (decrease) in net assets |
|
(15,663
)
|
|
(142
)
|
|
(347
)
|
|
(20
)
| |||
|
Net assets at December 31, 2022 |
|
31,471
|
|
249
|
|
551
|
|
81
| |||
|
Increase (decrease) in net assets |
| ||||||||||
|
Operations: |
| ||||||||||
|
Net investment income (loss) |
|
(390
)
|
|
—
|
|
1
|
|
(1
)
| |||
|
Total
realized gain (loss) on investments and capital gains |
|
(1,269
)
|
|
7
|
|
18
|
|
(2
)
| |||
|
Net unrealized appreciation (depreciation) of investments |
|
8,429
|
|
24
|
|
71
|
|
16
| |||
|
Net increase (decrease) in net assets resulting from operations |
|
6,770
|
|
31
|
|
90
|
|
13
| |||
|
Changes from principal transactions: |
| ||||||||||
|
Premiums |
|
109
|
|
4
|
|
10
|
|
1
| |||
|
Death Benefits |
|
(1,143
)
|
|
—
|
|
(6
)
|
|
(2
)
| |||
|
Surrenders and withdrawals |
|
(3,203
)
|
|
(79
)
|
|
(51
)
|
|
(1
)
| |||
|
Contract Charges |
|
(2
)
|
|
—
|
|
—
|
|
—
| |||
|
Cost of insurance and administrative charges |
|
(25
)
|
|
—
|
|
—
|
|
—
| |||
|
Transfers between Divisions |
|
(338
)
|
|
4
|
|
81
|
|
(1
)
| |||
|
Increase
(decrease) in net assets derived from principal |
|
(4,602
)
|
|
(71
)
|
|
34
|
|
(3
)
| |||
|
Total increase (decrease) in net assets |
|
2,168
|
|
(40
)
|
|
124
|
|
10
| |||
|
Net assets at December 31, 2023 |
$ |
33,639
|
$ |
209
|
$ |
675
|
$ |
91
| |||
|
The accompanying notes are an integral part of these financial statements. |
|
34 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Statements of Changes in Net Assets |
|
For the Years Ended December 31, 2023 and 2022 |
|
(Dollars in thousands) |
|
|
Voya U.S. Bond Index Portfolio - Class S | |
|
Net Assets at January 1, 2022 |
$ |
191
|
|
Increase (decrease) in net assets |
| |
|
Operations: |
| |
|
Net investment income (loss) |
|
1
|
|
Total
realized gain (loss) on investments and capital gains |
|
(3
)
|
|
Net unrealized appreciation (depreciation) of investments |
|
(25
)
|
|
Net increase (decrease) in net assets resulting from operations |
|
(27
)
|
|
Changes from principal transactions: |
| |
|
Premiums |
|
9
|
|
Death Benefits |
|
—
|
|
Surrenders and withdrawals |
|
(4
)
|
|
Contract Charges |
|
—
|
|
Cost of insurance and administrative charges |
|
—
|
|
Transfers between Divisions (including fixed account), net |
|
(14
)
|
|
Increase
(decrease) in net assets derived from principal |
|
(9
)
|
|
Total increase (decrease) in net assets |
|
(36
)
|
|
Net assets at December 31, 2022 |
|
155
|
|
Increase (decrease) in net assets |
| |
|
Operations: |
| |
|
Net investment income (loss) |
|
3
|
|
Total
realized gain (loss) on investments and capital gains |
|
(2
)
|
|
Net unrealized appreciation (depreciation) of investments |
|
4
|
|
Net increase (decrease) in net assets resulting from operations |
|
5
|
|
Changes from principal transactions: |
| |
|
Premiums |
|
3
|
|
Death Benefits |
|
—
|
|
Surrenders and withdrawals |
|
(4
)
|
|
Contract Charges |
|
—
|
|
Cost of insurance and administrative charges |
|
—
|
|
Transfers between Divisions |
|
35
|
|
Increase
(decrease) in net assets derived from principal |
|
34
|
|
Total increase (decrease) in net assets |
|
39
|
|
Net assets at December 31, 2023 |
$ |
194
|
|
The accompanying notes are an integral part of these financial statements. |
|
35 |
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
1. Organization
Venerable Insurance and Annuity Company (“VIAC” or the “Company”) is an Iowa stock life insurance company that was originally organized in 1973 under the insurance laws of Minnesota. On June 1, 2018, the Company became an indirectly wholly owned subsidiary of VA Capital Company LLC, an insurance holding company organized under Delaware law (“VA Capital”). The Company’s direct parent is Venerable Holdings, Inc. (“Venerable”). Before June 1, 2018, the Company was an indirectly wholly owned subsidiary of Voya Financial, Inc.
Separate Account EQ of the Company (the “Account”) was established by the Company on July 14, 1988, to support operations of the Company’s variable annuity contracts (the “Contracts”). None of the Contracts are currently available for new purchasers but existing Contract owners may continue to invest in their Contracts.
The variable annuity Contracts supported by the Account are:
| • | Equi-Select Variable Annuity |
| • | PrimeElite Variable Annuity |
The Account is registered as a unit investment trust with the Securities Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended. VIAC provides for variable accumulation and benefits under the Contracts by crediting annuity considerations to one or more divisions within the Account, as directed by the contract owners. The portion of the Account’s assets applicable to Contracts will not be charged with liabilities arising out of any other business VIAC may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of VIAC. Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of VIAC.
At December 31, 2023, the Account had 49 investment divisions (the “Divisions”), each which invests in shares of a designated independently managed mutual fund (“Fund”) of various investment trusts (“the Trusts”).
The Divisions with asset balances at December 31, 2023 and related Trusts are as follows:
|
BlackRock Variable Series Funds, Inc.: |
|
BlackRock Global Allocation V.I. Fund - Class III |
|
Columbia Funds Variable Insurance Trust: |
|
Columbia VP - Small Cap Value Fund - Class 2 |
|
Franklin Advisors, Inc.: |
|
Franklin Multi-Asset Variable Conservative Growth Fund |
|
Franklin Multi-Asset Variable Growth Fund |
|
Franklin Multi-Asset Variable Moderate Growth Fund |
|
Legg Mason Partners Variable Income Trust: |
|
Legg Mason Western Asset Core Plus VIT Portfolio - Class I |
|
Voya Intermediate Bond Portfolio: |
|
Voya Intermediate Bond Portfolio - Class S |
|
Voya Investors Trust: |
|
Voya Balanced Income Portfolio - Service Class |
|
Voya Global Perspectives® Portfolio - Class A |
|
Voya Government Liquid Assets Portfolio - Service Class |
|
Voya High Yield Portfolio - Service Class |
|
Voya Large Cap Growth Portfolio - Adviser Class |
|
Voya Large Cap Growth Portfolio - Service Class |
|
Voya Limited Maturity Bond Portfolio - Service Class |
|
Voya Retirement Conservative Portfolio - Adviser Class |
|
Voya Retirement Growth Portfolio - Adviser Class |
|
Voya Retirement Moderate Growth Portfolio - Adviser Class |
|
Voya Retirement Moderate Portfolio - Adviser Class |
|
Voya U.S. Stock Index Portfolio - Service Class |
|
VY® BlackRock Inflation Protected Bond Portfolio - Service Class |
|
VY® CBRE Global Real Estate Portfolio - Class S |
|
VY® CBRE Real Estate Portfolio - Class S |
|
VY® Invesco Growth and Income Portfolio - Service Class |
|
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class |
36
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
VY® Morgan Stanley Global Franchise Portfolio - Service Class |
|
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class |
|
Voya Partners, Inc.: |
|
Voya International High Dividend Low Volatility Portfolio - Service Class |
|
Voya Solution Moderately Aggressive Portfolio - Service Class |
|
VY® Columbia Small Cap Value II Portfolio - Service Class |
|
VY® Invesco Equity and Income Portfolio - Service Class |
|
VY® Invesco Equity and Income Portfolio - Service 2 Class |
|
Voya Global Insights Portfolio - Service Class |
|
VY® JPMorgan Mid Cap Value Portfolio - Service Class |
|
Voya Variable Portfolios, Inc.: |
|
Voya Global High Dividend Low Volatility Portfolio - Class S |
|
Voya Index Plus LargeCap Portfolio - Class S |
|
Voya Index Plus MidCap Portfolio - Class S |
|
Voya Index Plus SmallCap Portfolio - Class S |
|
Voya International Index Portfolio - Class A |
|
Voya International Index Portfolio - Class S |
|
Voya Russell™ Large Cap Growth Index Portfolio - Class I |
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S |
|
Voya Russell™ Large Cap Index Portfolio - Class S |
|
Voya Russell™ Large Cap Value Index Portfolio - Class I |
|
Voya Russell™ Large Cap Value Index Portfolio - Class S |
|
Voya Russell™ Mid Cap Growth Index Portfolio - Class S |
|
Voya Russell™ Mid Cap Index Portfolio - Class S |
|
Voya Russell™ Small Cap Index Portfolio - Class S |
|
Voya Small Company Portfolio - Class S |
|
Voya U.S. Bond Index Portfolio - Class S |
The names of certain Divisions were changed during 2023. The following is a summary of current and former names for those Divisions:
|
Current Name |
Former Name |
|
Voya Partners, Inc.: |
Voya Partners, Inc.: |
|
Voya Global Insights Portfolio - Service Class |
VY Invesco Global Portfolio - Service Class |
During 2023 there were no new Divisions opened or closed to contract owners.
2. Significant Accounting Policies
The following is a summary of the significant account policies of the Account.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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.
Investments
Investments are made in shares of a Division and are recorded at fair value, determined by the net asset value per share of the respective Division. Investment transactions in each Division are recorded on the trade date. Distributions of net investment income and capital gains from each Division are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Division are determined on a first-in, first-out basis. The difference between cost and current fair value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments.
37
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
Federal Income Taxes
Operations of the Account form a part of, and are taxed with, the total operations of VIAC, which is taxed as a life insurance company under the Internal Revenue Code (“IRC”). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited to contract owners. Accordingly, earnings and realized capital gains of the Account attributable to the contract owners are excluded in the determination of the federal income tax liability of VIAC, and no charge is being made to the Account for federal income taxes for these amounts. The Company will review this tax accounting in the event of changes in the tax law. Such changes in the law may result in a charge for federal income taxes. Uncertain tax positions are assessed at the parent level on a consolidated basis, including taxes of the operations of the Separate Account.
Contract Owner Reserves
The annuity reserves of the Account are represented by net assets on the Statements of Assets and Liabilities and are equal to the aggregate account values of the contract owners invested in the Account Divisions. To the extent that benefits to be paid to the contract owners exceed their account values, VIAC will contribute additional funds to the benefit proceeds. Conversely, if amounts allocated exceed amounts required, transfers may be made to VIAC. All Contracts in the Account are currently in the accumulation period. Prior to the annuitization date, the Contracts are redeemable for the net cash surrender value of the Contracts.
Changes from Principal Transactions
Included in Changes from principal transactions on the Statements of Changes in Net Assets are items which relate to contract owner activity, including premiums, death benefits, surrenders and withdrawals, contract charges, and cost of insurance and administrative charges. Also included are transfers between the fixed account and the Divisions, transfers between Divisions, and transfers to (from) VIAC related to gains and losses resulting from actual mortality experience (the full responsibility for which is assumed by VIAC).
Subsequent Events
The Account has evaluated subsequent events for recognition and disclosure through the date the financial statements were issued.
3. Financial Instruments
The Account invests assets in shares of open-end mutual funds, which process orders to purchase and redeem shares on a daily basis at the fund’s next computed net asset values (“NAV”). The fair value of the Account’s assets is based on the NAVs of mutual funds, which are obtained from the transfer agents or fund companies and reflect the fair values of the mutual fund investments. The NAV is calculated daily upon close of the New York Stock Exchange and is based on the fair values of the underlying securities.
The Account’s assets are recorded at fair value on the Statements of Assets and Liabilities and are categorized as Level 1 as of December 31, 2023. There were no transfers among the levels for the year ended December 31, 2023. The account had no liabilities as of December 31, 2023.
38
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
The Account categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.
| • | Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market. The Account defines an active market as a market in which transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis. |
| • | Level 2 - Quoted prices in markets that are not active or valuation techniques that require inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: |
| a) | Quoted prices for similar assets or liabilities in active markets; |
| b) | Quoted prices for identical or similar assets or liabilities in non-active markets; |
| c) | Inputs other than quoted market prices that are observable; and |
| d) | Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
| • | Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. |
4. Charges and Fees
Under the terms of the Contracts, certain charges and fees are incurred by the Contracts to cover VIAC’s expenses in connection with the issuance and administration of the Contracts. Following is a summary of these charges and fees:
Mortality and Expense Risk Charges
VIAC assumes mortality and expense risks related to the operations of the Account and, in accordance with the terms of the Contracts, deducts a daily charge from the assets of the Account. Daily charges are deducted at annual rates of 1.25% of the average daily net asset value of each Division of the Account to cover these risks, as specified in the Contracts. These charges are assessed through a reduction in unit values.
Asset Based Administrative Charges
A charge to cover administrative expenses of the Account is deducted at an annual rate of 0.15% of the assets attributable to the Contracts. These charges are assessed through a reduction in unit values.
Contract Maintenance Charges
An annual Contract maintenance fee of $30 may be deducted from the accumulation value of Contracts to cover ongoing administrative expenses, as specified in the Contracts. These charges are assessed through the redemption of units.
39
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
Contingent Deferred Sales Charges
For certain Contracts, a contingent deferred sales charge (“Surrender Charge”) is imposed as a percentage that ranges up to 8.00% of each premium payment if the Contract is surrendered or an excess partial withdrawal is taken, as specified in the Contract. These charges are assessed through the redemption of units.
Fees Waived by VIAC
Certain charges and fees for various types of Contracts may be waived by VIAC. VIAC reserves the right to discontinue these waivers at its discretion or to conform with changes in the law.
40
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
5. Purchase and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments for the year ended December 31, 2023 follow:
|
|
Purchases |
Sales | |||
|
|
(Dollars in thousands) | ||||
|
BlackRock Variable Series Funds, Inc.: |
| ||||
|
BlackRock Global Allocation V.I. Fund - Class III |
$ |
3
|
$ |
119
| |
|
Columbia Funds Variable Insurance Trust: |
| ||||
|
Columbia VP - Small Cap Value Fund - Class 2 |
|
5
|
|
5
| |
|
Franklin Advisors, Inc.: |
| ||||
|
Franklin Multi-Asset Variable Conservative Growth Fund |
|
143
|
|
401
| |
|
Franklin Multi-Asset Variable Growth Fund |
|
224
|
|
516
| |
|
Franklin Multi-Asset Variable Moderate Growth Fund |
|
194
|
|
836
| |
|
Legg Mason Partners Variable Income Trust: |
| ||||
|
Legg Mason Western Asset Core Plus VIT Portfolio - Class I |
|
46
|
|
119
| |
|
Voya Intermediate Bond Portfolio: |
| ||||
|
Voya Intermediate Bond Portfolio - Class S |
|
169
|
|
445
| |
|
Voya Investors Trust: |
| ||||
|
Voya Balanced Income Portfolio - Service Class |
|
95
|
|
109
| |
|
Voya Global Perspectives® Portfolio - Class A |
|
2
|
|
—
| |
|
Voya Government Liquid Assets Portfolio - Service Class |
|
710
|
|
1,142
| |
|
Voya High Yield Portfolio - Service Class |
|
54
|
|
88
| |
|
Voya Large Cap Growth Portfolio - Adviser Class |
|
113
|
|
136
| |
|
Voya Large Cap Growth Portfolio - Service Class |
|
—
|
|
2,310
| |
|
Voya Limited Maturity Bond Portfolio - Service Class |
|
28
|
|
178
| |
|
Voya Retirement Conservative Portfolio - Adviser Class |
|
161
|
|
65
| |
|
Voya Retirement Growth Portfolio - Adviser Class |
|
213
|
|
71
| |
|
Voya Retirement Moderate Growth Portfolio - Adviser Class |
|
97
|
|
52
| |
|
Voya Retirement Moderate Portfolio - Adviser Class |
|
144
|
|
102
| |
|
Voya U.S. Stock Index Portfolio - Service Class |
|
111
|
|
173
| |
|
VY® BlackRock Inflation Protected Bond Portfolio - Service Class |
|
10
|
|
24
| |
|
VY® CBRE Global Real Estate Portfolio - Class S |
|
1
|
|
4
| |
|
VY® CBRE Real Estate Portfolio - Class S |
|
77
|
|
70
| |
|
VY® Invesco Growth and Income Portfolio - Service Class |
|
701
|
|
936
| |
|
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class |
|
16
|
|
33
| |
|
VY® Morgan Stanley Global Franchise Portfolio - Service Class |
|
55
|
|
58
| |
|
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class |
|
1,444
|
|
2,424
| |
|
Voya Partners, Inc.: |
| ||||
|
Voya International High Dividend Low Volatility Portfolio - Service Class |
|
80
|
|
475
| |
|
Voya Solution Moderately Aggressive Portfolio - Service Class |
|
8
|
|
16
| |
41
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Purchases |
Sales | |||
|
|
(Dollars in thousands) | ||||
|
Voya Partners, Inc.: (continued) | |||||
|
VY® Columbia Small Cap Value II Portfolio - Service Class |
|
6
|
|
10
| |
|
VY® Invesco Equity and Income Portfolio - Service Class |
|
1,306
|
|
2,542
| |
|
VY® Invesco Equity and Income Portfolio - Service 2 Class |
|
53
|
|
29
| |
|
Voya Global Insights Portfolio - Service Class |
|
35
|
|
54
| |
|
VY® JPMorgan Mid Cap Value Portfolio - Service Class |
|
5
|
|
16
| |
|
Voya Variable Portfolios, Inc.: |
| ||||
|
Voya Global High Dividend Low Volatility Portfolio - Class S |
|
49
|
|
118
| |
|
Voya Index Plus LargeCap Portfolio - Class S |
|
2
|
|
15
| |
|
Voya Index Plus MidCap Portfolio - Class S |
|
6
|
|
43
| |
|
Voya Index Plus SmallCap Portfolio - Class S |
|
8
|
|
49
| |
|
Voya International Index Portfolio - Class A |
|
40
|
|
125
| |
|
Voya International Index Portfolio - Class S |
|
14
|
|
7
| |
|
Voya Russell™ Large Cap Growth Index Portfolio - Class I |
|
104
|
|
738
| |
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S |
|
142
|
|
293
| |
|
Voya Russell™ Large Cap Index Portfolio - Class S |
|
402
|
|
4,732
| |
|
Voya Russell™ Large Cap Value Index Portfolio - Class I |
|
151
|
|
903
| |
|
Voya Russell™ Large Cap Value Index Portfolio - Class S |
|
191
|
|
976
| |
|
Voya Russell™ Mid Cap Growth Index Portfolio - Class S |
|
69
|
|
5,058
| |
|
Voya Russell™ Mid Cap Index Portfolio - Class S |
|
36
|
|
87
| |
|
Voya Russell™ Small Cap Index Portfolio - Class S |
|
134
|
|
76
| |
|
Voya Small Company Portfolio - Class S |
|
2
|
|
5
| |
|
Voya U.S. Bond Index Portfolio - Class S |
|
44
|
|
7
| |
42
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
6. Changes in Units
The changes in units outstanding were as follows:
|
|
Year ended December 31, | ||||||||||
|
|
2023 |
2022 | |||||||||
|
|
Units |
Units |
Net
Increase |
Units |
Units |
Net
Increase | |||||
|
BlackRock Variable Series Funds, Inc.: |
| ||||||||||
|
BlackRock Global Allocation V.I. Fund - Class III |
—
|
7,634
|
(7,634
)
|
—
|
6,580
|
(6,580
)
| |||||
|
Columbia Funds Variable Insurance Trust: |
| ||||||||||
|
Columbia VP - Small Cap Value Fund - Class 2 |
—
|
115
|
(115
)
|
—
|
877
|
(877
)
| |||||
|
Franklin Advisors, Inc.: |
| ||||||||||
|
Franklin Multi-Asset Variable Conservative Growth Fund |
195
|
10,490
|
(10,295
)
|
374
|
9,842
|
(9,468
)
| |||||
|
Franklin Multi-Asset Variable Growth Fund |
44
|
14,545
|
(14,501
)
|
454
|
7,809
|
(7,355
)
| |||||
|
Franklin Multi-Asset Variable Moderate Growth Fund |
61
|
25,443
|
(25,382
)
|
56
|
20,357
|
(20,301
)
| |||||
|
Legg Mason Partners Variable Income Trust: |
| ||||||||||
|
Legg Mason Western Asset Core Plus VIT Portfolio - Class I |
35
|
4,024
|
(3,989
)
|
39
|
6,310
|
(6,271
)
| |||||
|
Voya Intermediate Bond Portfolio: |
| ||||||||||
|
Voya Intermediate Bond Portfolio - Class S |
7,388
|
32,193
|
(24,805
)
|
1,402
|
23,342
|
(21,940
)
| |||||
|
Voya Investors Trust: |
| ||||||||||
|
Voya Balanced Income Portfolio - Service Class |
4,747
|
5,874
|
(1,127
)
|
249
|
14,362
|
(14,113
)
| |||||
|
Voya Global Perspectives® Portfolio - Class A |
—
|
1
|
(1
)
|
—
|
1
|
(1
)
| |||||
|
Voya Government Liquid Assets Portfolio - Service Class |
33,353
|
72,211
|
(38,858
)
|
44,256
|
70,572
|
(26,316
)
| |||||
|
Voya High Yield Portfolio - Service Class |
728
|
3,643
|
(2,915
)
|
2,453
|
6,960
|
(4,507
)
| |||||
|
Voya Large Cap Growth Portfolio - Adviser Class |
3,537
|
3,681
|
(144
)
|
3,405
|
11,024
|
(7,619
)
| |||||
|
Voya Large Cap Growth Portfolio - Service Class |
3
|
40,907
|
(40,904
)
|
56
|
26,555
|
(26,499
)
| |||||
|
Voya Limited Maturity Bond Portfolio - Service Class |
88
|
7,712
|
(7,624
)
|
36
|
3,916
|
(3,880
)
| |||||
|
Voya Retirement Conservative Portfolio - Adviser Class |
9,981
|
4,353
|
5,628
|
135
|
20,534
|
(20,399
)
| |||||
|
Voya Retirement Growth Portfolio - Adviser Class |
2,528
|
2,638
|
(110
)
|
561
|
16,648
|
(16,087
)
| |||||
|
Voya Retirement Moderate Growth Portfolio - Adviser Class |
1,048
|
2,206
|
(1,158
)
|
819
|
2,454
|
(1,635
)
| |||||
|
Voya Retirement Moderate Portfolio - Adviser Class |
4,065
|
5,229
|
(1,164
)
|
2,132
|
4,008
|
(1,876
)
| |||||
|
Voya U.S. Stock Index Portfolio - Service Class |
6,696
|
13,042
|
(6,346
)
|
505
|
2,594
|
(2,089
)
| |||||
43
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Year ended December 31, | ||||||||||
|
|
2023 |
2022 | |||||||||
|
|
Units |
Units |
Net
Increase |
Units |
Units |
Net
Increase | |||||
|
Voya Investors Trust: (continued) | |||||||||||
|
VY® BlackRock Inflation Protected Bond Portfolio - Service Class |
43
|
1,787
|
(1,744
)
|
543
|
1,606
|
(1,063
)
| |||||
|
VY® CBRE Global Real Estate Portfolio - Class S |
—
|
228
|
(228
)
|
—
|
187
|
(187
)
| |||||
|
VY® CBRE Real Estate Portfolio - Class S |
49
|
432
|
(383
)
|
41
|
708
|
(667
)
| |||||
|
VY® Invesco Growth and Income Portfolio - Service Class |
1,357
|
11,217
|
(9,860
)
|
1,082
|
10,649
|
(9,567
)
| |||||
|
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class |
197
|
938
|
(741
)
|
485
|
2,086
|
(1,601
)
| |||||
|
VY® Morgan Stanley Global Franchise Portfolio - Service Class |
288
|
1,305
|
(1,017
)
|
175
|
2,530
|
(2,355
)
| |||||
|
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class |
459
|
14,995
|
(14,536
)
|
477
|
10,668
|
(10,191
)
| |||||
|
Voya Partners, Inc.: |
| ||||||||||
|
Voya International High Dividend Low Volatility Portfolio - Service Class |
1,339
|
35,426
|
(34,087
)
|
240
|
9,915
|
(9,675
)
| |||||
|
Voya Solution Moderately Aggressive Portfolio - Service Class |
—
|
1,004
|
(1,004
)
|
—
|
316
|
(316
)
| |||||
|
VY® Columbia Small Cap Value II Portfolio - Service Class |
2
|
390
|
(388
)
|
2
|
143
|
(141
)
| |||||
|
VY® Invesco Equity and Income Portfolio - Service Class |
80
|
89,986
|
(89,906
)
|
2
|
77,022
|
(77,020
)
| |||||
|
VY® Invesco Equity and Income Portfolio - Service 2 Class |
263
|
1,326
|
(1,063
)
|
2,884
|
6,182
|
(3,298
)
| |||||
|
Voya Global Insights Portfolio - Service Class |
252
|
1,713
|
(1,461
)
|
97
|
551
|
(454
)
| |||||
|
VY® JPMorgan Mid Cap Value Portfolio - Service Class |
—
|
590
|
(590
)
|
—
|
857
|
(857
)
| |||||
|
Voya Variable Portfolios, Inc.: |
| ||||||||||
|
Voya Global High Dividend Low Volatility Portfolio - Class S |
141
|
7,607
|
(7,466
)
|
3,138
|
8,096
|
(4,958
)
| |||||
|
Voya Index Plus LargeCap Portfolio - Class S |
—
|
439
|
(439
)
|
—
|
1,449
|
(1,449
)
| |||||
|
Voya Index Plus MidCap Portfolio - Class S |
9
|
1,369
|
(1,360
)
|
238
|
44
|
194
| |||||
|
Voya Index Plus SmallCap Portfolio - Class S |
42
|
1,810
|
(1,768
)
|
166
|
103
|
63
| |||||
|
Voya International Index Portfolio - Class A |
69
|
9,414
|
(9,345
)
|
5,497
|
13,863
|
(8,366
)
| |||||
|
Voya International Index Portfolio - Class S |
932
|
546
|
386
|
7,183
|
2,385
|
4,798
| |||||
|
Voya Russell™ Large Cap Index Portfolio - Class I |
—
|
63,347
|
(63,347
)
|
19,879
|
94,705
|
(74,826
)
| |||||
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S |
1,394
|
4,448
|
(3,054
)
|
532
|
3,234
|
(2,702
)
| |||||
|
Voya Russell™ Large Cap Index Portfolio - Class S |
2,413
|
132,836
|
(130,423
)
|
3,472
|
102,632
|
(99,160
)
| |||||
|
Voya Russell™ Large Cap Value Index Portfolio - Class I |
59
|
49,663
|
(49,604
)
|
8,438
|
58,244
|
(49,806
)
| |||||
|
Voya Russell™ Large Cap Value Index Portfolio - Class S |
3,429
|
26,855
|
(23,426
)
|
4,778
|
11,699
|
(6,921
)
| |||||
44
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Year ended December 31, | ||||||||||
|
|
2023 |
2022 | |||||||||
|
|
Units |
Units |
Net
Increase |
Units |
Units |
Net
Increase | |||||
|
Voya Variable Portfolios, Inc.: (continued) | |||||||||||
|
Voya Russell™ Mid Cap Growth Index Portfolio - Class S |
601
|
99,099
|
(98,498
)
|
2,132
|
58,199
|
(56,067
)
| |||||
|
Voya Russell™ Mid Cap Index Portfolio - Class S |
498
|
3,019
|
(2,521
)
|
274
|
2,827
|
(2,553
)
| |||||
|
Voya Russell™ Small Cap Index Portfolio - Class S |
4,431
|
2,803
|
1,628
|
713
|
7,253
|
(6,540
)
| |||||
|
Voya Small Company Portfolio - Class S |
59
|
172
|
(113
)
|
49
|
132
|
(83
)
| |||||
|
Voya U.S. Bond Index Portfolio - Class S |
3,490
|
408
|
3,082
|
827
|
1,603
|
(776
)
| |||||
45
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
7. Financial Highlights
A summary of unit values, units outstanding, and net assets for variable annuity Contracts as of December 31, 2023, 2022, 2021, 2020, and 2019 and expense ratios, excluding expenses of underlying Funds, investment income ratios and total returns for the years ended December 31, 2023, 2022, 2021, 2020, and 2019 follows:
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
BlackRock Global Allocation V.I. Fund - Class III | |||||||||||||
|
2023 |
|
9 |
$16.37
|
$140 |
1.79
%
|
1.40
%
|
10.92
%
| ||||||
|
2022 |
|
16 |
$14.76
|
$239 |
0.00
%
|
1.40
%
|
-17.30
%
| ||||||
|
2021 |
|
23 |
$17.83
|
$406 |
0.90
%
|
1.40
%
|
4.94
%
| ||||||
|
2020 |
|
24 |
$16.99
|
$402 |
1.20
%
|
1.40
%
|
18.98
%
| ||||||
|
2019 |
|
26 |
$14.28
|
$365 |
1.27
%
|
1.40
%
|
16.10
%
| ||||||
|
Columbia VP - Small Cap Value Fund - Class 2 | |||||||||||||
|
2023 |
|
2 |
$36.52
|
$75 |
0.40
%
|
1.40
%
|
19.97
%
| ||||||
|
2022 |
|
2 |
$30.44
|
$66 |
0.53
%
|
1.40
%
|
-11.48
%
| ||||||
|
2021 |
|
3 |
$33.91
|
$103 |
0.54
%
|
1.40
%
|
27.00
%
| ||||||
|
2020 |
|
3 |
$26.70
|
$84 |
0.27
%
|
1.40
%
|
7.06
%
| ||||||
|
2019 |
|
3 |
$24.94
|
$80 |
0.28
%
|
1.40
%
|
19.27
%
| ||||||
|
Franklin Multi-Asset Variable Conservative Growth Fund | |||||||||||||
|
2023 |
|
190 |
$32.39
|
$6,150 |
2.32
%
|
1.40
%
|
13.02
%
| ||||||
|
2022 |
|
200 |
$28.66
|
$5,737 |
2.07
%
|
1.40
%
|
-15.37
%
| ||||||
|
2021 |
|
210 |
$33.87
|
$7,100 |
3.76
%
|
1.40
%
|
9.93
%
| ||||||
|
2020 |
|
219 |
$30.81
|
$6,763 |
1.89
%
|
1.40
%
|
9.41
%
| ||||||
|
2019 |
|
256 |
$28.16
|
$7,209 |
2.07
%
|
1.40
%
|
15.69
%
| ||||||
|
Franklin Multi-Asset Variable Growth Fund | |||||||||||||
|
2023 |
|
117 |
$34.93
|
$4,077 |
1.15
%
|
1.40
%
|
17.90
%
| ||||||
|
2022 |
|
131 |
$29.63
|
$3,887 |
2.97
%
|
1.40
%
|
-16.35
%
| ||||||
|
2021 |
|
139 |
$35.27
|
$4,886 |
4.27
%
|
1.40
%
|
19.03
%
| ||||||
|
2020 |
|
151 |
$29.63
|
$4,477 |
1.37
%
|
1.40
%
|
9.66
%
| ||||||
|
2019 |
|
182 |
$27.02
|
$4,931 |
1.55
%
|
1.40
%
|
20.84
%
| ||||||
46
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
Franklin Multi-Asset Variable Moderate Growth Fund | |||||||||||||
|
2023 |
|
135 |
$32.53
|
$4,404 |
1.69
%
|
1.40
%
|
16.16
%
| ||||||
|
2022 |
|
161 |
$28.00
|
$4,502 |
1.64
%
|
1.40
%
|
-15.72
%
| ||||||
|
2021 |
|
181 |
$33.16
|
$6,005 |
4.58
%
|
1.40
%
|
15.02
%
| ||||||
|
2020 |
|
194 |
$28.83
|
$5,594 |
1.50
%
|
1.40
%
|
9.54
%
| ||||||
|
2019 |
|
227 |
$26.32
|
$5,965 |
1.65
%
|
1.40
%
|
18.72
%
| ||||||
|
Legg Mason Western Asset Core Plus VIT Portfolio - Class I | |||||||||||||
|
2023 |
|
45 |
$26.92
|
$1,208 |
3.69
%
|
1.40
%
|
5.32
%
| ||||||
|
2022 |
|
49 |
$25.56
|
$1,249 |
1.84
%
|
1.40
%
|
-17.69
%
| ||||||
|
2021 |
|
55 |
$31.32
|
$1,727 |
2.34
%
|
1.40
%
|
-3.33
%
| ||||||
|
2020 |
|
69 |
$32.40
|
$2,224 |
2.13
%
|
1.40
%
|
7.78
%
| ||||||
|
2019 |
|
75 |
$30.06
|
$2,254 |
4.59
%
|
1.40
%
|
10.60
%
| ||||||
|
Voya Intermediate Bond Portfolio - Class S | |||||||||||||
|
2023 |
|
134 |
$13.73
|
$1,845 |
3.85
%
|
1.40
%
|
5.53
%
| ||||||
|
2022 |
|
159 |
$13.01
|
$2,071 |
2.45
%
|
1.40
%
|
-15.35
%
| ||||||
|
2021 |
|
181 |
$15.46
|
$2,802 |
2.82
%
|
1.40
%
|
-2.46
%
| ||||||
|
2020 |
|
209 |
$15.85
|
$3,317 |
3.18
%
|
1.40
%
|
6.02
%
| ||||||
|
2019 |
|
235 |
$14.95
|
$3,507 |
3.11
%
|
1.40
%
|
8.02
%
| ||||||
|
Voya Balanced Income Portfolio - Service Class | |||||||||||||
|
2023 |
|
25 |
$18.74
|
$465 |
2.48
%
|
1.40
%
|
9.86
%
| ||||||
|
2022 |
|
26 |
$17.06
|
$443 |
1.95
%
|
1.40
%
|
-15.09
%
| ||||||
|
2021 |
|
40 |
$20.11
|
$806 |
2.26
%
|
1.40
%
|
7.60
%
| ||||||
|
2020 |
|
44 |
$18.69
|
$820 |
3.19
%
|
1.40
%
|
1.58
%
| ||||||
|
2019 |
|
63 |
$18.40
|
$1,151 |
4.69
%
|
1.40
%
|
16.75
%
| ||||||
|
Voya Global Perspectives® Portfolio - Class A | |||||||||||||
|
2023 |
|
1 |
$13.37
|
$16 |
6.29
%
|
1.40
%
|
8.65
%
| ||||||
|
2022 |
|
1 |
$12.31
|
$15 |
2.77
%
|
1.40
%
|
-18.77
%
| ||||||
|
2021 |
|
1 |
$15.16
|
$19 |
5.93
%
|
1.40
%
|
4.26
%
| ||||||
|
2020 |
|
— |
$14.54
|
$2 |
2.94
%
|
1.40
%
|
14.13
%
| ||||||
|
2019 |
|
— |
$12.74
|
$1 |
2.63
%
|
1.40
%
|
0.1635
| ||||||
47
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
Voya Government Liquid Assets Portfolio - Service Class | |||||||||||||
|
2023 |
|
306 |
$15.35
|
$4,692 |
4.29
%
|
1.40
%
|
3.21
%
| ||||||
|
2022 |
|
345 |
$14.87
|
$5,124 |
1.28
%
|
1.40
%
|
-0.06
%
| ||||||
|
2021 |
|
371 |
$14.88
|
$5,520 |
0.00
%
|
1.40
%
|
-1.39
%
| ||||||
|
2020 |
|
372 |
$15.09
|
$5,613 |
0.21
%
|
1.40
%
|
-1.11
%
| ||||||
|
2019 |
|
400 |
$15.26
|
$6,103 |
1.70
%
|
1.40
%
|
0.33
%
| ||||||
|
Voya High Yield Portfolio - Service Class | |||||||||||||
|
2023 |
|
26 |
$23.54
|
$613 |
6.27
%
|
1.40
%
|
10.44
%
| ||||||
|
2022 |
|
29 |
$21.32
|
$617 |
5.23
%
|
1.40
%
|
-13.68
%
| ||||||
|
2021 |
|
33 |
$24.71
|
$827 |
4.96
%
|
1.40
%
|
3.52
%
| ||||||
|
2020 |
|
41 |
$23.87
|
$979 |
4.91
%
|
1.40
%
|
4.14
%
| ||||||
|
2019 |
|
49 |
$22.92
|
$1,132 |
5.31
%
|
1.40
%
|
13.63
%
| ||||||
|
Voya Large Cap Growth Portfolio - Adviser Class | |||||||||||||
|
2023 |
|
68 |
$34.68
|
$2,367 |
0.00
%
|
1.40
%
|
35.15
%
| ||||||
|
2022 |
|
68 |
$25.66
|
$1,755 |
0.00
%
|
1.40
%
|
-31.93
%
| ||||||
|
2021 |
|
76 |
$37.71
|
$2,866 |
-0.00
%
|
1.40
%
|
17.26
%
| ||||||
|
2020 |
|
84 |
$32.16
|
$2,702 |
-0.00
%
|
1.40
%
|
28.28
%
| ||||||
|
2019 |
|
89 |
$25.07
|
$2,243 |
0.09
%
|
1.40
%
|
30.03
%
| ||||||
|
Voya Large Cap Growth Portfolio - Service Class | |||||||||||||
|
2023 |
|
224 |
$59.71
|
$13,395 |
0.00
%
|
1.40
%
|
35.46
%
| ||||||
|
2022 |
|
265 |
$44.08
|
$11,692 |
0.00
%
|
1.40
%
|
-31.66
%
| ||||||
|
2021 |
|
292 |
$64.47
|
$18,810 |
0.00
%
|
1.40
%
|
17.60
%
| ||||||
|
2020 |
|
337 |
$54.82
|
$18,484 |
0.24
%
|
1.40
%
|
28.75
%
| ||||||
|
2019 |
|
375 |
$42.58
|
$15,947 |
0.42
%
|
1.40
%
|
30.57
%
| ||||||
|
Voya Limited Maturity Bond Portfolio - Service Class | |||||||||||||
|
2023 |
|
29 |
$22.23
|
$652 |
3.61
%
|
1.40
%
|
3.06
%
| ||||||
|
2022 |
|
37 |
$21.57
|
$797 |
1.59
%
|
1.40
%
|
-6.18
%
| ||||||
|
2021 |
|
41 |
$23.01
|
$940 |
1.43
%
|
1.40
%
|
-1.54
%
| ||||||
|
2020 |
|
45 |
$23.37
|
$1,046 |
1.95
%
|
1.40
%
|
1.74
%
| ||||||
|
2019 |
|
52 |
$22.97
|
$1,192 |
1.59
%
|
1.40
%
|
2.59
%
| ||||||
48
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
Voya Retirement Conservative Portfolio - Adviser Class | |||||||||||||
|
2023 |
|
95 |
$12.34
|
$1,177 |
2.05
%
|
1.40
%
|
7.27
%
| ||||||
|
2022 |
|
90 |
$11.51
|
$1,033 |
1.96
%
|
1.40
%
|
-14.92
%
| ||||||
|
2021 |
|
110 |
$13.57
|
$1,495 |
2.23
%
|
1.40
%
|
3.27
%
| ||||||
|
2020 |
|
105 |
$13.14
|
$1,375 |
2.07
%
|
1.40
%
|
8.77
%
| ||||||
|
2019 |
|
72 |
$12.08
|
$864 |
1.68
%
|
1.40
%
|
11.96
%
| ||||||
|
Voya Retirement Growth Portfolio - Adviser Class | |||||||||||||
|
2023 |
|
88 |
$21.29
|
$1,876 |
1.44
%
|
1.40
%
|
16.17
%
| ||||||
|
2022 |
|
88 |
$18.32
|
$1,616 |
0.97
%
|
1.40
%
|
-18.09
%
| ||||||
|
2021 |
|
104 |
$22.31
|
$2,327 |
1.79
%
|
1.40
%
|
13.88
%
| ||||||
|
2020 |
|
115 |
$19.59
|
$2,256 |
2.13
%
|
1.40
%
|
12.07
%
| ||||||
|
2019 |
|
128 |
$17.48
|
$2,231 |
1.76
%
|
1.40
%
|
19.81
%
| ||||||
|
Voya Retirement Moderate Growth Portfolio - Adviser Class | |||||||||||||
|
2023 |
|
46 |
$20.21
|
$934 |
1.40
%
|
1.40
%
|
13.76
%
| ||||||
|
2022 |
|
47 |
$17.76
|
$841 |
1.27
%
|
1.40
%
|
-17.58
%
| ||||||
|
2021 |
|
49 |
$21.52
|
$1,055 |
1.75
%
|
1.40
%
|
12.32
%
| ||||||
|
2020 |
|
61 |
$19.16
|
$1,176 |
2.06
%
|
1.40
%
|
11.53
%
| ||||||
|
2019 |
|
73 |
$17.18
|
$1,257 |
1.61
%
|
1.40
%
|
18.40
%
| ||||||
|
Voya Retirement Moderate Portfolio - Adviser Class | |||||||||||||
|
2023 |
|
75 |
$17.37
|
$1,304 |
1.62
%
|
1.40
%
|
9.68
%
| ||||||
|
2022 |
|
76 |
$15.84
|
$1,207 |
1.62
%
|
1.40
%
|
-16.35
%
| ||||||
|
2021 |
|
78 |
$18.94
|
$1,479 |
2.09
%
|
1.40
%
|
8.11
%
| ||||||
|
2020 |
|
129 |
$17.52
|
$2,251 |
2.06
%
|
1.40
%
|
10.61
%
| ||||||
|
2019 |
|
136 |
$15.84
|
$2,148 |
1.77
%
|
1.40
%
|
15.54
%
| ||||||
|
Voya U.S. Stock Index Portfolio - Service Class | |||||||||||||
|
2023 |
|
15 |
$15.12
|
$234 |
1.06
%
|
1.40
%
|
23.80
%
| ||||||
|
2022 |
|
22 |
$12.21
|
$267 |
1.01
%
|
1.40
%
|
-20.15
%
| ||||||
|
2021 |
|
24 |
$15.20
|
$364 |
0.94
%
|
1.40
%
|
26.25
%
| ||||||
|
2020 |
|
25 |
$12.04
|
$304 |
1.56
%
|
1.40
%
|
16.22
%
| ||||||
|
2019 |
12/13/2019 |
28 |
$10.36
|
$290 |
(a) |
1.40
%
|
(a) | ||||||
49
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
VY® BlackRock Inflation Protected Bond Portfolio - Service Class | |||||||||||||
|
2023 |
|
23 |
$11.80
|
$267 |
3.34
%
|
1.40
%
|
2.72
%
| ||||||
|
2022 |
|
24 |
$11.49
|
$280 |
4.09
%
|
1.40
%
|
-13.76
%
| ||||||
|
2021 |
|
25 |
$13.40
|
$341 |
2.59
%
|
1.40
%
|
3.47
%
| ||||||
|
2020 |
|
22 |
$12.95
|
$280 |
1.56
%
|
1.40
%
|
9.28
%
| ||||||
|
2019 |
|
17 |
$11.85
|
$196 |
2.20
%
|
1.40
%
|
6.66
%
| ||||||
|
VY® CBRE Global Real Estate Portfolio - Class S | |||||||||||||
|
2023 |
|
2 |
$16.87
|
$39 |
1.64
%
|
1.40
%
|
10.76
%
| ||||||
|
2022 |
|
3 |
$15.23
|
$38 |
2.89
%
|
1.40
%
|
-25.62
%
| ||||||
|
2021 |
|
3 |
$20.63
|
$56 |
2.68
%
|
1.40
%
|
32.24
%
| ||||||
|
2020 |
|
3 |
$15.60
|
$52 |
5.00
%
|
1.40
%
|
-6.36
%
| ||||||
|
2019 |
|
3 |
$16.66
|
$58 |
2.76
%
|
1.40
%
|
22.59
%
| ||||||
|
VY® CBRE Real Estate Portfolio - Class S | |||||||||||||
|
2023 |
|
6 |
$148.01
|
$876 |
2.37
%
|
1.40
%
|
12.45
%
| ||||||
|
2022 |
|
6 |
$131.63
|
$829 |
1.53
%
|
1.40
%
|
-27.55
%
| ||||||
|
2021 |
|
7 |
$183.24
|
$1,276 |
1.99
%
|
1.40
%
|
49.84
%
| ||||||
|
2020 |
|
9 |
$122.29
|
$1,059 |
2.02
%
|
1.40
%
|
-7.85
%
| ||||||
|
2019 |
|
10 |
$132.71
|
$1,367 |
2.17
%
|
1.40
%
|
26.37
%
| ||||||
|
VY® Invesco Growth and Income Portfolio - Service Class | |||||||||||||
|
2023 |
|
90 |
$81.02
|
$7,328 |
1.76
%
|
1.40
%
|
10.77
%
| ||||||
|
2022 |
|
100 |
$73.14
|
$7,337 |
1.25
%
|
1.40
%
|
-8.21
%
| ||||||
|
2021 |
|
110 |
$78.78
|
$8,656 |
1.31
%
|
1.40
%
|
27.15
%
| ||||||
|
2020 |
|
133 |
$61.96
|
$8,212 |
1.83
%
|
1.40
%
|
1.46
%
| ||||||
|
2019 |
|
143 |
$61.07
|
$8,712 |
2.44
%
|
1.40
%
|
23.00
%
| ||||||
|
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class | |||||||||||||
|
2023 |
|
25 |
$26.62
|
$653 |
1.70
%
|
1.40
%
|
5.06
%
| ||||||
|
2022 |
|
25 |
$25.35
|
$642 |
0.00
%
|
1.40
%
|
-27.55
%
| ||||||
|
2021 |
|
27 |
$34.80
|
$937 |
0.00
%
|
1.40
%
|
-11.29
%
| ||||||
|
2020 |
|
32 |
$39.23
|
$1,241 |
0.30
%
|
1.40
%
|
31.51
%
| ||||||
|
2019 |
|
37 |
$29.83
|
$1,093 |
0.01
%
|
1.40
%
|
29.87
%
| ||||||
50
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
VY® Morgan Stanley Global Franchise Portfolio - Service Class | |||||||||||||
|
2023 |
|
13 |
$42.78
|
$546 |
0.51
%
|
1.40
%
|
14.29
%
| ||||||
|
2022 |
|
14 |
$37.43
|
$516 |
0.55
%
|
1.40
%
|
-18.28
%
| ||||||
|
2021 |
|
16 |
$46.06
|
$743 |
0.72
%
|
1.40
%
|
19.95
%
| ||||||
|
2020 |
|
14 |
$38.40
|
$523 |
0.60
%
|
1.40
%
|
11.69
%
| ||||||
|
2019 |
|
16 |
$34.38
|
$538 |
0.84
%
|
1.40
%
|
27.52
%
| ||||||
|
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class | |||||||||||||
|
2023 |
|
73 |
$165.68
|
$12,044 |
1.93
%
|
1.40
%
|
16.94
%
| ||||||
|
2022 |
|
87 |
$141.68
|
$12,359 |
1.17
%
|
1.40
%
|
-13.32
%
| ||||||
|
2021 |
|
97 |
$163.62
|
$15,940 |
0.84
%
|
1.40
%
|
16.75
%
| ||||||
|
2020 |
|
109 |
$140.15
|
$15,335 |
1.18
%
|
1.40
%
|
16.33
%
| ||||||
|
2019 |
|
128 |
$120.48
|
$15,432 |
1.47
%
|
1.40
%
|
22.61
%
| ||||||
|
Voya International High Dividend Low Volatility Portfolio - Service Class | |||||||||||||
|
2023 |
|
109 |
$13.66
|
$1,485 |
3.96
%
|
1.40
%
|
12.92
%
| ||||||
|
2022 |
|
143 |
$12.10
|
$1,727 |
4.13
%
|
1.40
%
|
-10.60
%
| ||||||
|
2021 |
|
152 |
$13.49
|
$2,057 |
2.11
%
|
1.40
%
|
10.21
%
| ||||||
|
2020 |
|
169 |
$12.24
|
$2,068 |
3.05
%
|
1.40
%
|
-2.31
%
| ||||||
|
2019 |
|
183 |
$12.53
|
$2,292 |
1.83
%
|
1.40
%
|
14.74
%
| ||||||
|
Voya Solution Moderately Aggressive Portfolio - Service Class | |||||||||||||
|
2023 |
|
6 |
$15.38
|
$87 |
3.49
%
|
1.40
%
|
16.96
%
| ||||||
|
2022 |
|
7 |
$13.15
|
$87 |
3.15
%
|
1.40
%
|
-20.26
%
| ||||||
|
2021 |
|
7 |
$16.43
|
$114 |
1.64
%
|
1.40
%
|
15.46
%
| ||||||
|
2020 |
|
7 |
$14.23
|
$106 |
1.34
%
|
1.40
%
|
12.31
%
| ||||||
|
2019 |
|
14 |
$12.67
|
$171 |
2.24
%
|
1.40
%
|
20.90
%
| ||||||
|
VY® Columbia Small Cap Value II Portfolio - Service Class | |||||||||||||
|
2023 |
|
3 |
$25.84
|
$78 |
0.52
%
|
1.40
%
|
12.26
%
| ||||||
|
2022 |
|
3 |
$23.02
|
$78 |
0.02
%
|
1.40
%
|
-15.92
%
| ||||||
|
2021 |
|
4 |
$27.11
|
$96 |
0.27
%
|
1.40
%
|
32.31
%
| ||||||
|
2020 |
|
4 |
$20.49
|
$88 |
0.50
%
|
1.40
%
|
8.01
%
| ||||||
|
2019 |
|
6 |
$18.97
|
$114 |
0.35
%
|
1.40
%
|
18.56
%
| ||||||
51
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
VY® Invesco Equity and Income Portfolio - Service Class | |||||||||||||
|
2023 |
|
634 |
$27.32
|
$17,315 |
1.93
%
|
1.40
%
|
8.43
%
| ||||||
|
2022 |
|
724 |
$25.20
|
$18,234 |
1.39
%
|
1.40
%
|
-9.70
%
| ||||||
|
2021 |
|
801 |
$27.73
|
$22,200 |
1.19
%
|
1.40
%
|
16.91
%
| ||||||
|
2020 |
|
888 |
$23.81
|
$21,117 |
1.48
%
|
1.40
%
|
8.11
%
| ||||||
|
2019 |
|
1,002 |
$21.94
|
$21,985 |
1.81
%
|
1.40
%
|
18.15
%
| ||||||
|
VY® Invesco Equity and Income Portfolio - Service 2 Class | |||||||||||||
|
2023 |
|
41 |
$16.87
|
$692 |
1.91
%
|
1.40
%
|
8.30
%
| ||||||
|
2022 |
|
42 |
$15.58
|
$656 |
1.30
%
|
1.40
%
|
-9.78
%
| ||||||
|
2021 |
|
45 |
$17.16
|
$779 |
1.10
%
|
1.40
%
|
16.73
%
| ||||||
|
2020 |
|
47 |
$14.79
|
$696 |
1.43
%
|
1.40
%
|
8.01
%
| ||||||
|
2019 |
|
51 |
$13.61
|
$694 |
1.38
%
|
1.40
%
|
17.94
%
| ||||||
|
Voya Global Insights Portfolio - Service Class | |||||||||||||
|
2023 |
|
6 |
$34.05
|
$219 |
0.00
%
|
1.40
%
|
30.55
%
| ||||||
|
2022 |
|
8 |
$26.10
|
$206 |
0.00
%
|
1.40
%
|
-33.01
%
| ||||||
|
2021 |
|
8 |
$38.98
|
$326 |
0.00
%
|
1.40
%
|
13.51
%
| ||||||
|
2020 |
|
9 |
$34.34
|
$308 |
0.83
%
|
1.40
%
|
25.65
%
| ||||||
|
2019 |
|
11 |
$27.33
|
$309 |
0.23
%
|
1.40
%
|
29.59
%
| ||||||
|
VY® JPMorgan Mid Cap Value Portfolio - Service Class | |||||||||||||
|
2023 |
|
2 |
$29.66
|
$46 |
0.89
%
|
1.40
%
|
8.99
%
| ||||||
|
2022 |
|
2 |
$27.21
|
$58 |
0.76
%
|
1.40
%
|
-10.17
%
| ||||||
|
2021 |
|
3 |
$30.20
|
$90 |
0.44
%
|
1.40
%
|
27.70
%
| ||||||
|
2020 |
|
6 |
$23.65
|
$145 |
0.98
%
|
1.40
%
|
-1.13
%
| ||||||
|
2019 |
|
7 |
$23.92
|
$161 |
0.96
%
|
1.40
%
|
24.45
%
| ||||||
|
Voya Global High Dividend Low Volatility Portfolio - Class S | |||||||||||||
|
2023 |
|
52 |
$14.95
|
$777 |
2.59
%
|
1.40
%
|
4.94
%
| ||||||
|
2022 |
|
59 |
$14.24
|
$846 |
2.41
%
|
1.40
%
|
-6.20
%
| ||||||
|
2021 |
|
64 |
$15.22
|
$980 |
2.34
%
|
1.40
%
|
18.81
%
| ||||||
|
2020 |
|
91 |
$12.81
|
$1,162 |
2.03
%
|
1.40
%
|
-2.44
%
| ||||||
|
2019 |
|
101 |
$13.13
|
$1,332 |
2.29
%
|
1.40
%
|
19.69
%
| ||||||
52
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
Voya Index Plus LargeCap Portfolio - Class S | |||||||||||||
|
2023 |
|
2 |
$38.26
|
$78 |
0.65
%
|
1.40
%
|
23.95
%
| ||||||
|
2022 |
|
2 |
$30.86
|
$76 |
0.54
%
|
1.40
%
|
-20.77
%
| ||||||
|
2021 |
|
4 |
$38.76
|
$152 |
0.87
%
|
1.40
%
|
27.12
%
| ||||||
|
2020 |
|
4 |
$30.49
|
$128 |
0.55
%
|
1.40
%
|
14.02
%
| ||||||
|
2019 |
|
12 |
$26.74
|
$324 |
1.46
%
|
1.40
%
|
27.94
%
| ||||||
|
Voya Index Plus MidCap Portfolio - Class S | |||||||||||||
|
2023 |
|
3 |
$33.89
|
$91 |
0.99
%
|
1.40
%
|
15.56
%
| ||||||
|
2022 |
|
4 |
$29.33
|
$119 |
0.58
%
|
1.40
%
|
-15.80
%
| ||||||
|
2021 |
|
4 |
$34.80
|
$134 |
0.73
%
|
1.40
%
|
25.72
%
| ||||||
|
2020 |
|
4 |
$27.68
|
$108 |
0.55
%
|
1.40
%
|
6.46
%
| ||||||
|
2019 |
|
11 |
$26.00
|
$297 |
1.09
%
|
1.40
%
|
24.94
%
| ||||||
|
Voya Index Plus SmallCap Portfolio - Class S | |||||||||||||
|
2023 |
|
4 |
$30.68
|
$114 |
0.91
%
|
1.40
%
|
16.24
%
| ||||||
|
2022 |
|
5 |
$26.40
|
$145 |
0.59
%
|
1.40
%
|
-16.27
%
| ||||||
|
2021 |
|
5 |
$31.20
|
$169 |
0.52
%
|
1.40
%
|
26.32
%
| ||||||
|
2020 |
|
6 |
$24.70
|
$138 |
0.50
%
|
1.40
%
|
3.65
%
| ||||||
|
2019 |
|
12 |
$23.83
|
$283 |
0.76
%
|
1.40
%
|
19.87
%
| ||||||
|
Voya International Index Portfolio - Class A | |||||||||||||
|
2023 |
|
66 |
$12.84
|
$846 |
4.74
%
|
1.40
%
|
15.46
%
| ||||||
|
2022 |
|
75 |
$11.12
|
$837 |
2.76
%
|
1.40
%
|
-16.42
%
| ||||||
|
2021 |
|
84 |
$13.28
|
$1,110 |
1.99
%
|
1.40
%
|
8.94
%
| ||||||
|
2020 |
|
100 |
$12.19
|
$1,220 |
1.88
%
|
1.40
%
|
5.72
%
| ||||||
|
2019 |
|
121 |
$11.53
|
$1,391 |
2.64
%
|
1.40
%
|
0.1923
| ||||||
|
Voya International Index Portfolio - Class S | |||||||||||||
|
2023 |
|
6 |
$12.21
|
$74 |
4.96
%
|
1.40
%
|
15.90
%
| ||||||
|
2022 |
|
6 |
$10.54
|
$60 |
0.77
%
|
1.40
%
|
-16.27
%
| ||||||
|
2021 |
|
1 |
$12.55
|
$11 |
2.62
%
|
1.40
%
|
9.04
%
| ||||||
|
2020 |
|
1 |
$11.51
|
$17 |
0.55
%
|
1.40
%
|
6.08
%
| ||||||
|
2019 |
|
11 |
$10.85
|
$124 |
2.88
%
|
1.40
%
|
19.36
%
| ||||||
53
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
Voya Russell™ Large Cap Growth Index Portfolio - Class I | |||||||||||||
|
2023 |
|
807 |
$10.89
|
$8,790 |
1.28
%
|
1.40
%
|
27.60
%
| ||||||
|
2022 |
|
871 |
$8.53
|
$7,429 |
0.63
%
|
1.40
%
|
-21.86
%
| ||||||
|
2021 |
10/15/2021 |
946 |
11
|
$10,236 |
(b) |
1.40
%
|
(b) | ||||||
|
2020 |
|
(b) |
(b) |
(b) |
(b) |
(b) |
(b) | ||||||
|
2019 |
|
(b) |
(b) |
(b) |
(b) |
(b) |
(b) | ||||||
|
Voya Russell™ Large Cap Growth Index Portfolio - Class S | |||||||||||||
|
2023 |
|
16 |
$75.63
|
$1,176 |
0.28
%
|
1.40
%
|
43.61
%
| ||||||
|
2022 |
|
19 |
$52.66
|
$980 |
0.11
%
|
1.40
%
|
-31.91
%
| ||||||
|
2021 |
|
21 |
$76.53
|
$1,630 |
0.34
%
|
1.40
%
|
28.56
%
| ||||||
|
2020 |
|
22 |
$59.53
|
$1,298 |
0.43
%
|
1.40
%
|
36.19
%
| ||||||
|
2019 |
|
26 |
$43.71
|
$1,148 |
0.54
%
|
1.40
%
|
33.55
%
| ||||||
|
Voya Russell™ Large Cap Index Portfolio - Class S | |||||||||||||
|
2023 |
|
953 |
$36.30
|
$34,585 |
1.04
%
|
1.40
%
|
27.27
%
| ||||||
|
2022 |
|
1,083 |
$28.52
|
$30,893 |
0.53
%
|
1.40
%
|
-22.05
%
| ||||||
|
2021 |
|
1,182 |
$36.28
|
$42,891 |
1.20
%
|
1.40
%
|
25.36
%
| ||||||
|
2020 |
|
1,199 |
$28.94
|
$34,702 |
1.19
%
|
1.40
%
|
19.88
%
| ||||||
|
2019 |
|
1,313 |
$24.14
|
$31,701 |
1.48
%
|
1.40
%
|
29.09
%
| ||||||
|
Voya Russell™ Large Cap Value Index Portfolio - Class I | |||||||||||||
|
2023 |
|
412 |
$17.38
|
$7,168 |
2.07
%
|
1.40
%
|
8.73
%
| ||||||
|
2022 |
|
462 |
$15.99
|
$7,386 |
1.31
%
|
1.40
%
|
-7.32
%
| ||||||
|
2021 |
|
512 |
$17.16
|
$8,780 |
2.29
%
|
1.40
%
|
21.27
%
| ||||||
|
2020 |
|
555 |
$14.15
|
$7,852 |
1.02
%
|
1.40
%
|
0.07
%
| ||||||
|
2019 |
|
618 |
$14.14
|
$8,735 |
2.58
%
|
0.014
|
0.2414
| ||||||
|
Voya Russell™ Large Cap Value Index Portfolio - Class S | |||||||||||||
|
2023 |
|
96 |
$37.16
|
$3,576 |
1.96
%
|
1.40
%
|
8.45
%
| ||||||
|
2022 |
|
120 |
$34.27
|
$4,101 |
1.14
%
|
1.40
%
|
-7.55
%
| ||||||
|
2021 |
|
127 |
$36.86
|
$4,666 |
1.39
%
|
1.40
%
|
21.01
%
| ||||||
|
2020 |
|
87 |
$30.46
|
$2,640 |
0.88
%
|
1.40
%
|
-0.23
%
| ||||||
|
2019 |
|
98 |
$30.53
|
$2,999 |
0.57
%
|
1.40
%
|
23.85
%
| ||||||
54
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
|
|
Fund |
Units |
Unit Fair Value |
Net
Assets |
Investment |
Expense RatioC |
Total ReturnD | ||||||
|
Voya Russell™ Mid Cap Growth Index Portfolio - Class S | |||||||||||||
|
2023 |
|
643 |
$52.34
|
$33,639 |
0.20
%
|
1.40
%
|
23.27
%
| ||||||
|
2022 |
|
741 |
$42.46
|
$31,471 |
0.00
%
|
1.40
%
|
-27.47
%
| ||||||
|
2021 |
|
797 |
$59.12
|
$47,134 |
0.01
%
|
1.40
%
|
10.46
%
| ||||||
|
2020 |
|
251 |
$53.52
|
$13,452 |
0.15
%
|
1.40
%
|
32.64
%
| ||||||
|
2019 |
|
276 |
$40.35
|
$11,152 |
0.56
%
|
1.40
%
|
32.64
%
| ||||||
|
Voya Russell™ Mid Cap Index Portfolio - Class S | |||||||||||||
|
2023 |
|
7 |
$30.62
|
$209 |
1.37
%
|
1.40
%
|
14.88
%
| ||||||
|
2022 |
|
9 |
$26.65
|
$249 |
0.66
%
|
1.40
%
|
-18.68
%
| ||||||
|
2021 |
|
12 |
$32.87
|
$391 |
0.79
%
|
1.40
%
|
20.09
%
| ||||||
|
2020 |
|
12 |
$27.37
|
$332 |
0.89
%
|
1.40
%
|
14.71
%
| ||||||
|
2019 |
|
17 |
$23.86
|
$410 |
1.38
%
|
1.40
%
|
27.94
%
| ||||||
|
Voya Russell™ Small Cap Index Portfolio - Class S | |||||||||||||
|
2023 |
|
26 |
$26.23
|
$675 |
1.50
%
|
1.40
%
|
14.73
%
| ||||||
|
2022 |
|
24 |
$22.86
|
$551 |
0.49
%
|
1.40
%
|
-22.92
%
| ||||||
|
2021 |
|
31 |
$29.31
|
$898 |
0.50
%
|
1.40
%
|
12.47
%
| ||||||
|
2020 |
|
30 |
$26.06
|
$786 |
0.88
%
|
1.40
%
|
17.65
%
| ||||||
|
2019 |
|
39 |
$22.15
|
$859 |
0.61
%
|
1.40
%
|
23.06
%
| ||||||
|
Voya Small Company Portfolio - Class S | |||||||||||||
|
2023 |
|
3 |
$26.88
|
$91 |
0.21
%
|
1.40
%
|
16.04
%
| ||||||
|
2022 |
|
3 |
$23.17
|
$81 |
0.00
%
|
1.40
%
|
-18.73
%
| ||||||
|
2021 |
|
4 |
$28.26
|
$101 |
-0.00
%
|
1.40
%
|
12.86
%
| ||||||
|
2020 |
|
4 |
$25.04
|
$91 |
0.31
%
|
1.40
%
|
10.45
%
| ||||||
|
2019 |
|
6 |
$22.67
|
$128 |
0.13
%
|
1.40
%
|
24.08
%
| ||||||
|
Voya U.S. Bond Index Portfolio - Class S | |||||||||||||
|
2023 |
|
17 |
$11.24
|
$194 |
3.69
%
|
1.40
%
|
3.31
%
| ||||||
|
2022 |
|
14 |
$10.88
|
$155 |
1.92
%
|
1.40
%
|
-13.94
%
| ||||||
|
2021 |
|
15 |
$12.74
|
$191 |
1.53
%
|
1.40
%
|
-3.48
%
| ||||||
|
2020 |
|
22 |
$13.20
|
$290 |
3.62
%
|
1.40
%
|
5.52
%
| ||||||
|
2019 |
|
16 |
$12.51
|
$202 |
2.19
%
|
1.40
%
|
6.47
%
| ||||||
55
|
VENERABLE INSURANCE AND ANNUITY COMPANY |
|
SEPARATE ACCOUNT EQ |
|
Notes to Financial Statements |
| (a) | As investment Division had no investments until 2019, this data is not meaningful and is therefore not presented. |
| (b) | As investment Division had no investments until 2021, this data is not meaningful and is therefore not presented. |
| AThe Fund Inception Date represents the first date the fund received money. |
| BThe Investment Income Ratio represents dividends received by the Division, excluding capital gains distributions, divided by the average net assets. The recognition of investment income is determined by the timing of the declaration of dividends by the underlying fund in which the Division invests. |
| CThe Expense Ratio considers only the annualized contract expenses borne directly by the Account, excluding expenses charged through the redemption of units, and is equal to the mortality and expense and administrative charges as defined in the Charges and Fees note. |
| DTotal Return is calculated as the change in unit value for each Contract presented in the Statements of Assets and Liabilities. |
56
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|
Report of Independent Auditors |
1
|
|
Audited Financial Statements - Statutory Basis
|
|
|
Balance Sheets - as of December
31, 2023 and 2022
|
4
|
|
Statements of Operations - for
the years ended December 31, 2023, 2022,
and 2021 |
6
|
|
Statements of Changes in Capital
and Surplus - for the years ended December 31, 2023,
2022, and 2021
|
7
|
|
Statements of Cash Flows - for
the years ended December 31, 2023, 2022,
and 2021 |
8
|
|
Notes to Financial
Statements |
9
|
|
Supplementary Information |
|
|
Report of Independent
Auditors on Supplementary Information |
68
|
|
Supplemental Schedule
of Selected Statutory Basis Financial Data |
69
|
|
Investment Risk
Interrogatories |
72
|
|
Summary Investment
Schedule |
77
|
|
Supplemental Schedule
of Life and Health Reinsurance Disclosures |
71
|
|
Note to Supplementary
Information |
73
|
|
December 31 | |||
|
2023 |
2022 | ||
|
Admitted Assets |
(In Thousands) | ||
|
Cash and invested assets: |
|||
|
Bonds |
$
5,300,980 |
$
8,513,944 | |
|
Preferred stocks |
36,331 |
45,310 | |
|
Common stocks and investment in and advances to subsidiaries
|
1,303,586 |
1,498,766 | |
|
Mortgage loans |
1,206,983 |
1,788,620 | |
|
Contract loans |
2,564 |
3,283 | |
|
Other invested assets |
276,198 |
406,058 | |
|
Cash and short-term investments |
347,556 |
206,621 | |
|
Total cash and invested assets |
8,474,198 |
12,462,602 | |
|
Deferred and uncollected premiums |
(69,778) |
(50,342) | |
|
Accrued investment income |
61,429 |
93,741 | |
|
Reinsurance balances recoverable |
72,909 |
61,717 | |
|
Indebtedness from related parties |
4,558 |
2,895 | |
|
Federal income tax recoverable (including $0 and $0 on realized capital losses at December
31, 2023 and 2022, respectively) |
60,633 |
56,736 | |
|
Other assets |
7,168 |
14,946 | |
|
Separate account assets |
18,501,762 |
18,254,229 | |
|
Total admitted assets |
$
27,112,879 |
$
30,896,524 | |
|
December 31 | |||
|
2023 |
2022 | ||
|
(In Thousands, except share amounts)
| |||
|
Liabilities and Capital and Surplus |
|||
|
Liabilities: |
|||
|
Policy and contract liabilities: |
|||
|
Life and annuity reserves |
$
6,633,960 |
$
9,204,810 | |
|
Deposit type contracts |
12,136 |
1,128,799 | |
|
Policy and contract claims |
(9,584) |
(6,692) | |
|
Total policy and contract liabilities |
6,636,512 |
10,326,917 | |
|
Interest maintenance reserve |
63,141 |
105,483 | |
|
Accounts payable and accrued expenses |
2,335 |
1,838 | |
|
Reinsurance balances |
52,492 |
43,139 | |
|
Asset valuation reserve |
80,151 |
92,899 | |
|
Net transfers from separate accounts due or accrued
|
(40,976) |
(45,354) | |
|
Other liabilities |
106,304 |
118,443 | |
|
Separate account liabilities |
18,501,762 |
18,254,229 | |
|
Total liabilities |
25,401,721 |
28,897,594 | |
|
Capital and surplus: |
|||
|
Common stock: authorized 250,000 shares of $10 par value;
250,000 shares issued and outstanding |
2,500 |
2,500 | |
|
Special surplus funds |
330,388 |
234,385 | |
|
Surplus notes |
226,121 |
252,109 | |
|
Paid in and contributed surplus |
1,160,463 |
1,160,463 | |
|
Unassigned funds (surplus) |
(8,314) |
349,473 | |
|
Total capital and surplus |
1,711,158 |
1,998,930 | |
|
Total liabilities and capital and surplus |
$
27,112,879 |
$
30,896,524 | |
|
Year ended December 31
| |||||
|
2023 |
2022 |
2021 | |||
|
(In Thousands) | |||||
|
Premiums and other revenues: |
|||||
|
Life, annuity, and accident and health premiums
|
$
662 |
$
1,502 |
$
(4,618,622) | ||
|
Policy proceeds and dividends left on deposit
|
(1,046,124) |
— |
26,150 | ||
|
Net investment income |
415,512 |
697,904 |
480,810 | ||
|
Amortization of interest maintenance reserve
|
10,679 |
15,268 |
(3,284) | ||
|
Commissions, expense allowances, and reserve adjustments
on reinsurance ceded |
(1,646,871) |
(1,378,912) |
(1,137,736) | ||
|
Other revenue |
9,566 |
10,733 |
27,809 | ||
|
Total premiums and other revenues |
(2,256,576) |
(653,505) |
(5,224,873) | ||
|
Benefits paid: |
|||||
|
Annuity benefits |
763,447 |
918,628 |
1,055,864 | ||
|
Surrender benefits and withdrawals |
1,461,814 |
1,444,422 |
2,239,392 | ||
|
Interest and adjustments on contract or deposit-type funds
|
— |
— |
46,119 | ||
|
Other benefits |
— |
— |
89,868 | ||
|
Decrease in life, annuity, and accident and health reserves
|
(2,554,967) |
(984,696) |
(3,148,513) | ||
|
Net transfers from separate accounts |
(2,362,633) |
(2,398,558) |
(3,291,212) | ||
|
Total benefits paid |
(2,692,339) |
(1,020,204) |
(3,008,482) | ||
|
Insurance expenses and other deductions: |
|||||
|
Commissions |
105,764 |
120,874 |
148,821 | ||
|
General expenses |
68,580 |
73,476 |
97,210 | ||
|
Insurance taxes, licenses, and fees |
2,483 |
3,167 |
3,757 | ||
|
Other expense (income) |
104,179 |
10,962 |
(1,721,629) | ||
|
Total insurance (income) expenses and other deductions |
281,006 |
208,479 |
(1,471,841) | ||
|
Gain (loss) from operations before federal income taxes and net realized capital losses
|
154,757 |
158,220 |
(744,550) | ||
|
Federal income tax benefit |
(6,459) |
(42,421) |
(39,431) | ||
|
Gain (loss) from operations before net realized capital losses |
161,216 |
200,641 |
(705,119) | ||
|
Net realized capital loss |
(252,545) |
(3,444) |
(563,814) | ||
|
Net income (loss) |
$
(91,329) |
$
197,197 |
$
(1,268,933) | ||
|
Year
ended December 31 | |||||
|
2023
|
2022
|
2021
| |||
|
(In
Thousands) | |||||
|
Common stock: |
|||||
|
Balance at beginning
and end of year |
$
2,500 |
$
2,500 |
$
2,500 | ||
|
Surplus notes: |
|||||
|
Balance at beginning
of year |
252,109 |
334,879 |
350,000 | ||
|
Surplus notes issued
|
16,121 |
— |
— | ||
|
Surplus notes paid
|
(42,109)
|
(82,770)
|
(15,121)
| ||
|
Balance at end of
year |
226,121 |
252,109 |
334,879 | ||
|
Paid-in and contributed surplus:
|
|||||
|
Balance at beginning
of year |
$
1,160,463 |
$
1,160,463 |
$
1,240,463 | ||
|
Return of capital
|
— |
— |
(80,000)
| ||
|
Balance at end
of year |
1,160,463 |
1,160,463 |
1,160,463 | ||
|
Special surplus funds:
|
|||||
|
Balance at beginning
of year |
234,385 |
246,451 |
258,517 | ||
|
Gain on ceded
reinsurance |
110,274 |
— |
— | ||
|
Amortization
of gain on reinsurance |
(14,271)
|
(12,066)
|
(12,066)
| ||
|
Balance at end
of year |
330,388 |
234,385 |
246,451 | ||
|
Unassigned surplus:
|
|||||
|
Balance at beginning
of year |
349,473 |
342,911 |
834,348 | ||
|
Net income (loss)
|
(91,329)
|
197,197 |
(1,268,933)
| ||
|
Change in net
unrealized capital gains (losses) |
4,497 |
(211,903)
|
589,704 | ||
|
Change in nonadmitted
assets |
(299,578)
|
11,868 |
(517)
| ||
|
Change in reserve
due to change in valuation basis |
15,876 |
— |
— | ||
|
Change in asset
valuation reserve |
12,747 |
41,349 |
258,309 | ||
|
Dividends to
stockholder |
— |
(32,000)
|
(70,000)
| ||
|
Other changes
in surplus |
$
— |
$
51 |
$
— | ||
|
Balance at end
of year |
(8,314)
|
349,473 |
342,911 | ||
|
Total capital and surplus
|
$
1,711,158 |
$
1,998,930 |
$
2,087,204 | ||
|
Year
ended December 31 | |||||
|
2023
|
2022
|
2021
| |||
|
(In
Thousands) | |||||
|
Operating Activities
|
|||||
|
Premiums, policy proceeds, and other
considerations received, net of reinsurance paid |
$
(186) |
$
4,372 |
$
1,329 | ||
|
Net investment income received
|
439,330 |
486,369 |
430,986 | ||
|
Commissions and expenses paid
|
(334,684)
|
(486,578)
|
2,740 | ||
|
Benefits paid |
(4,253,021)
|
(3,522,061)
|
(3,258,646)
| ||
|
Net transfers from separate accounts
|
2,368,173 |
2,397,560 |
3,692,570 | ||
|
Miscellaneous income
|
125,538 |
128,301 |
68,762 | ||
|
Net cash (used in) provided by operations
|
(1,654,850)
|
(992,037)
|
937,741 | ||
|
Investment Activities
|
|||||
|
Proceeds from sales, maturities, or
repayments of investments: |
|||||
|
Bonds
|
1,432,566 |
1,404,297 |
4,936,089 | ||
|
Stocks
|
210,700 |
26,669 |
77,435 | ||
|
Mortgage loans
|
263,234 |
435,728 |
461,361 | ||
|
Other invested
assets |
114,648 |
494,553 |
62,982 | ||
|
Miscellaneous
proceeds |
(8,797)
|
(27,552)
|
(15,720)
| ||
|
Total investment proceeds
|
2,012,351 |
2,333,695 |
5,522,147 | ||
|
Cost of investments acquired:
|
|||||
|
Bonds
|
174,026 |
1,368,835 |
3,558,765 | ||
|
Stocks
|
— |
16,500 |
76,683 | ||
|
Mortgage loans
|
19,635 |
30,852 |
24,454 | ||
|
Other invested
assets |
20,265 |
191,292 |
503,232 | ||
|
Net gain (loss)
on derivatives |
— |
— |
— | ||
|
Miscellaneous
applications |
(190)
|
(10,332)
|
531,958 | ||
|
Total cost of investments acquired
|
213,736 |
1,597,147 |
4,695,092 | ||
|
Net decrease in contract loans
|
719 |
393 |
745 | ||
|
Net cash provided by investment activities
|
1,799,334 |
736,941 |
827,800 | ||
|
Financing and Miscellaneous
Activities |
|||||
|
Other cash provided (applied):
|
|||||
|
Surplus notes
|
(25,988)
|
(82,770)
|
(415,121)
| ||
|
Capital and paid-in
surplus, less treasury stock |
— |
— |
(1,329,505)
| ||
|
Net deposits
(withdrawals) on deposit type contracts |
267,327 |
200,495 |
(11,711)
| ||
|
Dividends paid
to stockholder |
— |
158,000 |
(70,000)
| ||
|
Nonadmitted cash
and short-term investments |
(300,000)
|
— |
— | ||
|
Other cash provided
(applied) |
55,112 |
60,050 |
(600,667)
| ||
|
Net cash provided by (used in) financing
and miscellaneous activities |
(3,549)
|
335,775 |
(2,427,004)
| ||
|
Net increase (decrease) in cash and
short-term investments |
140,935 |
80,679 |
(661,463)
| ||
|
Cash and short-term investments:
|
|||||
|
Beginning of
year |
206,621 |
125,942 |
787,405 | ||
|
End of year
|
$
347,556 |
$
206,621 |
$
125,942 | ||
|
December
31 | |||
|
2023
|
2022
| ||
|
(In
Thousands) | |||
|
Cash and short-term investments
|
300,000 |
— | |
|
Healthcare and other amounts receivable
|
271 |
590 | |
|
Other |
43 |
146 | |
|
Total nonadmitted assets
|
$
300,314 |
$
736 | |
|
1
|
2
|
3
|
4
|
5
|
|
Purchased
entity |
Acquisition
date |
Cost
of acquired entity |
Original
amount of goodwill |
Original
amount of admitted goodwill |
|
(In
Thousands) | ||||
|
CSLR
|
06/01/2021
|
$
215,580 |
$
121,269 |
$
121,269 |
|
1
|
6
|
7
|
8
|
9
|
|
Purchased
entity |
Admitted
goodwill as of the reporting date |
Amount
of goodwill amortized during the reporting period |
Book
Value of SCA |
Admitted
goodwill as a % of SCA BACV, gross of admitted goodwill Col. 6/Col. 8 |
|
(In
Thousands) |
||||
|
CSLR
|
$
89,941 |
$
12,127 |
$
1,293,336 |
7.0%
|
|
Calculation
of Limitation Using Prior Quarter Numbers |
Current
Reporting Period | ||
|
(In
Thousands) | |||
|
(1) Capital &
Surplus |
$
1,902,577 |
XXX
| |
|
Less:
|
|||
|
(2) Admitted Positive
Goodwill |
92,973 |
XXX
| |
|
(3) Admitted EDP Equipment
& Operating System Software |
— |
XXX
| |
|
(4) Admitted Net Deferred
Taxes |
— |
XXX
| |
|
(5) Adjusted Capital and
Surplus |
1,809,604 |
XXX
| |
|
(6) Limitation on amount
of goodwill (adjusted capital and surplus times 10% goodwill limitation) |
180,960 |
XXX
| |
|
(7) Current period reported
Admitted Goodwill |
XXX
|
$
89,941 | |
|
(8) Current Period Admitted
Goodwill as a % of prior period Adjusted Capital and Surplus |
XXX
|
5.0
% | |
|
Cost
or Amortized Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value | ||||
|
(In
Thousands) | |||||||
|
At December 31,
2023 |
|||||||
|
U.S. Treasury securities and obligations
of U.S. government corporations and agencies |
$
9,755 |
$
— |
$
190 |
$
9,565 | |||
|
States, municipalities, and political
subdivisions |
70,972 |
— |
5,764 |
65,209 | |||
|
Foreign other (par value - $1,859,046)
|
1,864,843 |
2,271 |
109,302 |
1,757,811 | |||
|
Foreign government (par value - $77,498)
|
82,536 |
88 |
14,467 |
68,157 | |||
|
Corporate securities
|
2,519,876 |
8,317 |
197,156 |
2,331,036 | |||
|
Residential mortgage-backed securities
|
101,079 |
5,823 |
6,755 |
100,147 | |||
|
Commercial mortgage-backed securities
|
111,351 |
6 |
19,983 |
91,375 | |||
|
Other asset backed securities
|
542,671 |
458 |
26,654 |
516,475 | |||
|
Total bonds |
5,303,083 |
16,963 |
380,271 |
4,939,775 | |||
|
Preferred stocks |
38,646 |
80 |
2,415 |
36,311 | |||
|
Common stocks |
10,000 |
— |
— |
10,000 | |||
|
Total equity securities
|
48,646 |
80 |
2,415 |
46,311 | |||
|
Total |
$
5,351,729 |
$
17,043 |
$
382,686 |
$
4,986,086 | |||
|
At December 31,
2022 |
|||||||
|
U.S. Treasury securities and obligations
of U.S. government corporations and agencies |
$
20,694 |
$
— |
$
554 |
20,141 | |||
|
States, municipalities, and political
subdivisions |
117,130 |
— |
11,863 |
105,268 | |||
|
Foreign other (par value - $2,686,484)
|
2,694,702 |
5,717 |
221,328 |
2,479,091 | |||
|
Foreign government (par value - $105,761)
|
112,184 |
82 |
18,683 |
93,582 | |||
|
Corporate securities
|
3,987,611 |
12,431 |
389,739 |
3,610,304 | |||
|
Residential mortgage-backed securities
|
183,903 |
7,925 |
15,836 |
175,992 | |||
|
Commercial mortgage-backed securities
|
260,781 |
6 |
33,482 |
227,306 | |||
|
Other asset backed securities
|
1,138,743 |
5,421 |
85,051 |
1,059,113 | |||
|
Total bonds |
8,515,748 |
31,582 |
776,536 |
7,770,797 | |||
|
Preferred stocks |
49,347 |
14,496 |
12,717 |
51,126 | |||
|
Common stocks |
10,000 |
— |
— |
10,000 | |||
|
Total equity securities
|
59,347 |
14,496 |
12,717 |
61,126 | |||
|
Total |
$
8,575,095 |
$
46,078 |
$
789,253 |
$
7,831,923 | |||
|
December
31 | |||
|
2023
|
2022
| ||
|
(In
Thousands) | |||
|
Cost or amortized cost
|
$
5,303,083 |
$
8,515,748 | |
|
Adjustment for FX and below investment
grade bonds |
(2,103)
|
(1,804)
| |
|
Carrying value |
$
5,300,980 |
$
8,513,944 | |
|
Less
than 6 Months Below Cost |
More
than 6 Months and Less than 12 Months Below Cost |
More
than 12 Months Below Cost |
Total
| ||||
|
(In
Thousands) | |||||||
|
At December 31,
2023 |
|||||||
|
Fair value |
$
207,212 |
$
1,441,522 |
$
2,942,067 |
$
4,590,801 | |||
|
Unrealized loss |
22,657 |
112,819 |
244,795 |
380,271 | |||
|
At December 31,
2022 |
|||||||
|
Fair value |
$
812,979 |
$
4,709,751 |
$
1,731,451 |
$
7,254,181 | |||
|
Unrealized loss |
32,032 |
427,080 |
317,423 |
776,535 | |||
|
Amortized
Cost |
Fair
Value | |||
|
(In
Thousands) | ||||
|
Maturity: |
||||
|
Due in 1 year or less
|
$
283,211 |
$
280,075 | ||
|
Due after 1 year through 5 years
|
1,350,201 |
1,298,488 | ||
|
Due after 5 years through 10 years
|
1,174,648 |
1,078,840 | ||
|
Due after 10 years |
1,739,922 |
1,574,375 | ||
|
4,547,982 |
4,231,778 | |||
|
Residential mortgage-backed securities
|
101,079 |
100,147 | ||
|
Commercial mortgage-backed securities
|
111,351 |
91,375 | ||
|
Other asset-backed securities
|
542,671 |
516,475 | ||
|
Total |
$
5,303,083 |
$
4,939,775 | ||
|
Actual
Cost |
Book/Adjusted
Carrying Value (excluding interest) |
Fair
Value |
Other
Than Temporary Impairment Losses Recognized | ||||
|
(In
Thousands) | |||||||
|
December 31, 2023
|
|||||||
|
Residential mortgage-backed securities
|
$
43,074 |
$
38,988 |
$
43,064 |
$
(299) | |||
|
Structured securities
|
725 |
605 |
533 |
— | |||
|
Total |
$
43,799 |
$
39,593 |
$
43,597 |
$
(299) | |||
|
December 31, 2022
|
|||||||
|
Residential mortgage-backed securities
|
$
53,418 |
$
53,321 |
$
51,623 |
$
(1,620) | |||
|
Structured securities
|
3,429 |
$
1,432 |
5,466 |
(2)
| |||
|
Total |
$
56,847 |
$
54,753 |
$
57,089 |
$
(1,622) | |||
|
General Account |
Separate Account |
|
|
December 31, 2023 |
(In Thousands) | |
|
Number of CUSIPs |
4 |
— |
|
Aggregate Amount of Investment Income |
$
228 |
$
— |
|
December 31, 2022 |
||
|
Number of CUSIPs |
15 |
2 |
|
Aggregate Amount of Investment Income |
$
4,386 |
$
373 |
|
December 31, 2021 |
||
|
Number of CUSIPs |
73 |
8 |
|
Aggregate Amount of Investment Income |
$
37,446 |
$
528 |
|
December
31 | |||||
|
2023
|
2022
|
2021
| |||
|
(In Thousands) | |||||
|
Realized capital (losses) gains
|
$
(270,351) |
$
41,714 |
$
(484,377) | ||
|
Amount transferred to IMR (net of
related taxes of $(6,450) in 2023, $728 in 2022, and $3,319 in 2021) |
24,265 |
(2,737)
|
(40,007)
| ||
|
Federal income tax benefit (expense)
|
(6,459)
|
(42,421)
|
(39,431)
| ||
|
Net realized capital (losses)
|
$
(252,545) |
$
(3,444) |
$
(563,815) | ||
|
Amortized Cost Basis Before Other-than-Temporary
Impairment |
Other-than-Temporary
Impairment Recognized in Loss |
Fair Value | |||||||
|
Interest
|
Non-interest
|
||||||||
|
(In
Thousands) |
|||||||||
|
OTTI recognized as of December 31,
2023 |
|||||||||
|
a. |
Intent to sell |
133 |
— |
14 |
119 | ||||
|
b. |
Inability or lack of intent to retain the investment in the security for a period of
time sufficient to recover the amortized cost basis |
$
— |
$
— |
$
— |
$
— | ||||
|
c. |
Total |
133 |
— |
14 |
119 | ||||
|
CUSIP
|
Book/Adjusted
Carrying Value Amortized Cost Before Current Period OTTI |
Present
Value of Projected Cash Flows |
Recognized
Other-Than-Temporary Impairment |
Amortized
Cost After Other-Than-Temporary Impairment |
Fair
Value at Time of OTTI |
Date
of Financial Statement Where Reported | ||||||
|
(In
Thousands) |
||||||||||||
|
2254582J6 |
$
132,866 |
$
119 |
$
14 |
$
119 |
$
119 |
3/31/2023
| ||||||
|
86359DBX4 |
(272,639) |
16 |
(289) |
16 |
16 |
6/30/2023
| ||||||
|
05531RAE7 |
1,729,361 |
1,702 |
27 |
1,702 |
1,702 |
12/31/2023
| ||||||
|
0738794H8 |
100,898 |
96 |
5 |
96 |
96 |
12/31/2023
| ||||||
|
07387UGC9 |
169,567 |
123 |
46 |
123 |
123 |
12/31/2023
| ||||||
|
02147RAT7 |
65,690 |
58 |
8 |
58 |
58 |
12/31/2023
| ||||||
|
36245RAA7 |
558,900 |
498 |
61 |
498 |
498 |
12/31/2023
| ||||||
|
41161UAE2 |
193,928 |
193 |
1 |
193 |
193 |
12/31/2023
| ||||||
|
46631JAA6 |
612,285 |
601 |
11 |
601 |
601 |
12/31/2023
| ||||||
|
61758LAD1 |
1,685,678 |
1,521 |
164 |
1,521 |
1,521 |
12/31/2023
| ||||||
|
86359DBX4 |
9,139 |
5 |
5 |
5 |
5 |
12/31/2023
| ||||||
|
93935YAA8 |
137,396 |
137 |
— |
137 |
137 |
12/31/2023
| ||||||
|
00256DAB8 |
2,059,155 |
653 |
1,406 |
653 |
653 |
12/31/2023
| ||||||
|
125430AA6 |
2,912,797 |
2,812 |
101 |
2,812 |
2,812 |
12/31/2023
| ||||||
|
00075WAP4 |
219,785 |
201 |
19 |
201 |
201 |
12/31/2023
| ||||||
|
17314RAF2 |
5,937,119 |
5,935 |
2 |
5,935 |
5,935 |
12/31/2023
| ||||||
|
2254582C1 |
188,589 |
157 |
32 |
157 |
157 |
12/31/2023
| ||||||
|
36185MAD4 |
127,673 |
116 |
12 |
116 |
116 |
12/31/2023
| ||||||
|
41161UAC6 |
1,532,169 |
1,433 |
99 |
1,433 |
1,433 |
12/31/2023
| ||||||
|
761118QM3 |
1,751,695 |
1,737 |
14 |
1,737 |
1,737 |
12/31/2023
| ||||||
|
Total |
XXX
|
XXX
|
$
1,738 |
XXX
|
XXX
|
XXX
| ||||||
|
December
31, 2023 | |||
|
Aggregate
Amount of Unrealized Losses |
Aggregate
Fair Value of Securities with Unrealized Losses | ||
|
(In
Thousands) | |||
|
Less than 12 months
|
$
5,925 |
$
247,672 | |
|
Greater than 12 months
|
65,968 |
954,716 | |
|
Total |
$
71,893 |
$
1,202,388 | |
|
December 31, 2022 |
|||
|
Aggregate Amount of Unrealized Losses
|
Aggregate Fair Value of Securities with
Unrealized Losses | ||
|
(In Thousands) | |||
|
Less than 12 months |
$
138,531 |
$
1,774,079 | |
|
Greater than 12 months |
71,355 |
506,295 | |
|
Total |
$
209,886 |
$
2,280,374 | |
|
Year
ended December 31 | |||||
|
2023
|
2022
|
2021
| |||
|
(In
Thousands) | |||||
|
Income: |
|||||
|
Bonds
|
$
332,812 |
$
390,992 |
$
556,906 | ||
|
Mortgage loans
|
64,942 |
102,573 |
128,248 | ||
|
Equity securities
|
2,093 |
2,866 |
4,658 | ||
|
Subsidiary
|
— |
190,000 |
(3,031)
| ||
|
Contract loans
|
40 |
435 |
214 | ||
|
Derivatives
|
— |
— |
(243,546)
| ||
|
Other
|
30,584 |
31,228 |
73,101 | ||
|
Total investment income
|
430,471 |
718,093 |
516,550 | ||
|
Investment expenses
|
(14,959)
|
(20,189)
|
(35,740)
| ||
|
Net investment income
|
$
415,512 |
$
697,904 |
$
480,810 | ||
|
Year ended
December 31, | |
|
Interest Income Due and Accrued
|
2023
|
|
(In Thousands)
| |
|
1. Gross |
$
61,429 |
|
2. Nonadmitted |
$
— |
|
3. Admitted |
$
61,429 |
|
2023
|
2022
| |||||||||||
|
General
Account |
Separate
Account |
Total
|
General
Account |
Separate
Account |
Total
| |||||||
|
(In
Thousands) | ||||||||||||
|
Membership stock - Class A
|
$
— |
$
— |
$
— |
$
— |
$
— |
$
— | ||||||
|
Membership stock - Class B
|
10,000 |
— |
10,000 |
10,000 |
— |
10,000 | ||||||
|
Activity stock |
— |
— |
— |
— |
— |
— | ||||||
|
Excess stock |
— |
— |
— |
— |
— |
— | ||||||
|
Aggregate total |
$
10,000 |
$
— |
$
10,000 |
$
10,000 |
$
— |
$
10,000 | ||||||
|
Gross
(Admitted & Nonadmitted) Restricted |
|||||||||||||||||||
|
General
Account |
Separate
Account |
Total
Assets |
Total
From Prior Year |
Increase/(Decrease)
|
Total
Nonadmitted
Restricted
|
Total
Admitted Restricted
|
Gross (Admitted &
Nonadmitted)
Restricted to
Total Assets
|
Admitted
Restricted to Total Admitted Assets | |||||||||||
|
Restricted Asset
Category |
Total
Assets |
Supporting
Separate Account Activity* |
Supporting
General Account Activity** |
||||||||||||||||
|
(In
Thousands) |
|||||||||||||||||||
|
FHLB capital stock
|
10,000 |
— |
— |
10,000 |
10,000 |
— |
— |
10,000 |
0.04
% |
0.04
% | |||||||||
|
On deposit with states
|
10,070 |
— |
— |
10,070 |
9,975 |
95 |
— |
10,070 |
0.04
% |
0.04
% | |||||||||
|
Total restricted assets
|
$
20,070 |
$
— |
$
— |
$
20,070 |
$
19,975 |
$
95 |
$
— |
$
20,070 |
0.08
% |
0.08
% | |||||||||
|
* Subset of Total
General Account Gross Restricted Assets | |||||||||||||||||||
|
Gross
(Admitted & Nonadmitted) Restricted |
||||||||||||||||||
|
General
Account |
Total
Assets |
Total
From Prior Year |
Increase/(Decrease)
|
Total
Nonadmitted
Restricted
|
Total
Admitted Restricted
|
Gross (Admitted &
Nonadmitted)
Restricted to
Total Assets
|
Admitted
Restricted to Total Admitted Assets | |||||||||||
|
Restricted Asset
Category |
Total
Assets |
Supporting
Separate Account Activity* |
||||||||||||||||
|
(In
Thousands) |
||||||||||||||||||
|
FHLB capital stock
|
10,000 |
— |
10,000 |
10,000 |
— |
10,000 |
0.03
% |
0.03
% | ||||||||||
|
On deposit with states
|
9,975 |
— |
9,975 |
9,923 |
52 |
— |
9,975 |
0.03
% |
0.03
% | |||||||||
|
Total restricted assets
|
$
19,975 |
$
— |
$
19,975 |
$
19,923 |
$
52 |
$
— |
$
19,975 |
0.06
% |
0.06
% | |||||||||
|
* Subset of Total
General Account Gross Restricted Assets | ||||||||||||||||||
|
** Subset of
Total Separate Account Restricted Assets | ||||||||||||||||||
|
As of December 31, 2023
|
As of December 31, 2022
| |||||||
|
Carrying Value |
% |
Carrying Value |
% | |||||
|
(In Thousands) |
(In Thousands) |
|||||||
|
Origination Loan-to-Value |
||||||||
|
0% - 50% |
$
596,393 |
49.4
% |
$
444,926 |
24.9
% | ||||
|
50% - 60% |
239,770 |
19.9
% |
769,287 |
43.0
% | ||||
|
60% - 70% |
246,333 |
20.4
% |
545,009 |
30.5
% | ||||
|
70% - 80% |
87,147 |
7.2
% |
29,398 |
1.6
% | ||||
|
Above 80% |
37,340 |
3.1
% |
— |
—
% | ||||
|
Total |
$
1,206,983 |
100.0
% |
$
1,788,620 |
100.0
% | ||||
|
Debt Service Coverage Ratio |
||||||||
|
Greater than 1.5x |
$
876,208 |
72.6
% |
$
1,287,216 |
72.0
% | ||||
|
1.25x to 1.5x |
131,933 |
10.9
% |
242,739 |
13.6
% | ||||
|
1.0x to 1.25x |
134,080 |
11.1
% |
163,796 |
9.2
% | ||||
|
Less than 1.0x |
37,122 |
3.1
% |
79,233 |
4.3
% | ||||
|
Not Applicable* |
27,640 |
2.3
% |
15,636 |
0.9
% | ||||
|
Total |
$
1,206,983 |
100.0
% |
$
1,788,620 |
100.0
% | ||||
|
*Commercial mortgage loans secured by land or construction loans |
||||||||
|
As
of December 31, 2023 |
As
of December 31, 2022 | |||||||
|
Property
Type |
Carrying
Value |
%
|
Carrying
Value |
%
| ||||
|
(In
Thousands) |
(In
Thousands) |
|||||||
|
Retail |
$
337,561 |
28.0
% |
$
545,287 |
30.5
% | ||||
|
Apartments |
289,362 |
24.0
% |
366,539 |
20.5
% | ||||
|
Office |
323,892 |
26.8
% |
450,440 |
25.2
% | ||||
|
Industrial |
133,487 |
11.1
% |
176,122 |
9.8
% | ||||
|
Other |
25,779 |
2.1
% |
167,963 |
9.4
% | ||||
|
Hotel/Motel |
57,021 |
4.7
% |
82,269 |
4.6
% | ||||
|
Mixed Use |
39,881 |
3.3
% |
— |
—
% | ||||
|
Total |
$
1,206,983 |
100.0
% |
$
1,788,620 |
100.0
% | ||||
|
As
of December 31, 2023 |
As
of December 31, 2022 | |||||||
|
Region
|
Carrying
Value |
%
|
Carrying
Value |
%
| ||||
|
(In
Thousands) |
(In
Thousands) |
|||||||
|
Pacific |
$
258,558 |
21.4
% |
$
417,237 |
23.3
% | ||||
|
South Atlantic |
178,131 |
14.7
% |
368,333 |
20.6
% | ||||
|
West South Central |
64,663 |
5.3
% |
118,890 |
6.6
% | ||||
|
East North Central |
240,528 |
19.9
% |
264,776 |
14.8
% | ||||
|
Middle Atlantic |
278,376 |
23.1
% |
362,287 |
20.3
% | ||||
|
Mountain |
145,555 |
12.1
% |
178,516 |
10.0
% | ||||
|
West North Central |
13,957 |
1.2
% |
21,832 |
1.2
% | ||||
|
New England |
23,904 |
2.0
% |
28,061 |
1.6
% | ||||
|
East South Central |
3,311 |
0.3
% |
28,688 |
1.6
% | ||||
|
Total |
$
1,206,983 |
100.0
% |
$
1,788,620 |
100.0
% | ||||
|
Year
of Origination |
As
of December 31, 2023 |
As
of December 31, 2022 | ||
|
(In
Thousands) | ||||
|
2023
|
$
5,544 |
$
— | ||
|
2022
|
28,134 |
26,756 | ||
|
2021
|
8,917 |
767 | ||
|
2020
|
38,948 |
65,909 | ||
|
2019
|
66,042 |
76,854 | ||
|
2018
|
246,390 |
296,633 | ||
|
2017
|
138,636 |
236,405 | ||
|
2016
|
160,309 |
281,434 | ||
|
2015
|
101,117 |
217,447 | ||
|
2014
|
188,228 |
251,533 | ||
|
2013 and prior
|
224,718 |
334,882 | ||
|
Total |
$
1,206,983 |
$
1,788,620 | ||
|
A. INDIVIDUAL
ANNUITIES |
||||||
|
General Account
|
Separate Account
with Guarantees* |
Separate Account
Nonguaranteed |
Total
|
% of Total
| ||
|
(In Thousands)
| ||||||
|
(1) Subject to discretionary withdrawal:
|
||||||
|
a. With market value adjustment
|
$
4,711,509 |
$
97,942 |
$
— |
$
4,809,452 |
25.5
% | |
|
b. At book value less current
surrender charge of 5% or more |
188,403 |
84 |
— |
188,487 |
1.0
% | |
|
c. At fair value
|
— |
— |
7,116,064 |
7,116,064 |
37.7
% | |
|
d. Total with market value
adjustment or at fair value (total of a through c) |
4,899,912 |
98,026 |
7,116,064 |
12,114,003 |
64.2
% | |
|
e. At book value without
adjustment (minimal or no charge or adjustment) |
3,208,480 |
8,022 |
— |
3,216,502 |
17.0
% | |
|
(2) Not subject to discretionary
withdrawal |
3,549,121 |
— |
— |
3,549,121 |
18.8
% | |
|
(3) Total (gross: direct
+ assumed) |
11,657,513 |
106,048 |
7,116,064 |
18,879,626 |
100.0
% | |
|
(4). Reinsurance ceded
|
5,189,662 |
— |
— |
5,189,662 |
||
|
(5) Total (net) (3) - (4)
|
6,467,851 |
106,048 |
7,116,064 |
13,689,964 |
||
|
(6) Amount included in
A(1) above that will move to A(1) for the first time within the year after the statement date: |
105,635 |
— |
— |
105,635 |
||
|
*These amounts reflect prescribed
or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 1, Summary of Significant Accounting
Polices for additional information. |
||||||
|
B. GROUP
ANNUITIES |
||||||
|
General Account
|
Separate Account
with Guarantees* |
Separate Account
Nonguaranteed |
Total
|
% of Total
| ||
|
(In Thousands)
| ||||||
|
(1) Subject to discretionary withdrawal:
|
||||||
|
a. With market value adjustment
|
$
141,016 |
$
140,597 |
$
— |
$
281,613 |
2.4
% | |
|
b. At book value less current
surrender charge of 5% or more |
939 |
831 |
— |
1,770 |
—
% | |
|
c. At fair value
|
— |
— |
11,047,832 |
11,047,832 |
96.7
% | |
|
d. Total with market value
adjustment or at fair value (total of a through c) |
141,955 |
141,428 |
11,047,832 |
11,331,215 |
99.1
% | |
|
e. At book value without
adjustment (minimal or no charge or adjustment) |
97,395 |
20 |
— |
97,415 |
0.9
% | |
|
(2) Not subject to discretionary
withdrawal |
— |
— |
— |
— |
—
% | |
|
(3) Total (gross: direct
+ assumed) |
239,350 |
141,448 |
11,047,832 |
11,428,630 |
100.0
% | |
|
(4). Reinsurance ceded
|
98,931 |
— |
— |
98,931 |
||
|
(5) Total (net) (3) - (4)
|
140,419 |
141,448 |
11,047,832 |
11,329,699 |
||
|
(6) Amount included in
A(1) above that will move to A(1) for the first time within the year after the statement date: |
917 |
— |
— |
917 |
||
|
*These amounts reflect prescribed
or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 1, Summary of Significant Accounting
Polices for additional information. |
||||||
|
C. DEPOSIT-TYPE
CONTRACTS (no life contingencies): |
||||||
|
General Account
|
Separate Account
with Guarantees* |
Separate Account
Nonguaranteed |
Total
|
% of Total
| ||
|
(In Thousands)
| ||||||
|
(1) Subject to discretionary withdrawal:
|
||||||
|
a. With market value adjustment
|
$
— |
$
— |
$
— |
$
— |
—
% | |
|
b. At book value less current
surrender charge of 5% or more |
— |
— |
— |
— |
—
% | |
|
c. At fair value
|
— |
— |
— |
— |
—
% | |
|
d. Total with market value
adjustment or at fair value (total of a through c) |
— |
— |
— |
— |
—
% | |
|
e. At book value without
adjustment (minimal or no charge or adjustment) |
59,673 |
— |
— |
59,673 |
1.7
% | |
|
(2) Not subject to discretionary
withdrawal |
3,509,757 |
— |
— |
3,509,757 |
98.3
% | |
|
(3) Total (gross: direct
+ assumed) |
3,569,430 |
— |
— |
3,569,430 |
100.0
% | |
|
(4). Reinsurance ceded
|
3,557,294 |
— |
— |
3,557,294 |
||
|
(5) Total (net) (3) - (4)
|
12,136 |
— |
— |
12,136 |
||
|
(6) Amount included in
A(1) above that will move to A(1) for the first time within the year after the statement date: |
— |
— |
— |
— |
||
|
*These amounts reflect prescribed
or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 1, Summary of Significant Accounting
Polices for additional information. |
||||||
|
D.
|
||||||
|
Life & Accident
& Health Annual Statement: |
Amount
|
|||||
|
(In Thousands)
|
||||||
|
(1) |
Exhibit 5, Annuities Section, Total
(net) |
$
6,602,019 |
||||
|
(2) |
Exhibit 5, Supplemental Contracts
with Life Contingencies Section, Total (net) |
6,252 |
||||
|
(3) |
Exhibit 7, Deposit - Type Contracts,
line 14, column 1 |
12,136 |
||||
|
(4) |
Subtotal (1+2+3) |
$
6,620,407 |
||||
|
Separate Accounts
Annual Statement: |
||||||
|
(5) |
Exhibit 3, line 0299999, column 2
|
$
18,411,392 |
||||
|
(6) |
Exhibit 3, line 0399999, column 2
|
— |
||||
|
(7) |
Policyholder dividend and coupon accumulations
|
— |
||||
|
(8) |
Policyholder premiums
|
— |
||||
|
(9) |
Guaranteed interest contracts
|
— |
||||
|
(10) |
Other contract deposit funds
|
— |
||||
|
(11) |
Subtotal (5+6+7+8+9+10)
|
$
18,411,392 |
||||
|
(12) |
Combined total (4+11)
|
$
25,031,799 |
||||
|
Account Value |
Cash Value |
Reserve |
||||
|
(In Thousands) |
||||||
|
General Account |
||||||
|
(1)
Subject to discretionary withdrawal, surrender values, or policy loans:
|
||||||
|
a.
Term Policies with Cash Value |
$
— |
$
— |
$
— |
|||
|
b.
Universal Life |
211,890 |
212,528 |
252,753 |
|||
|
c.
Universal Life with Secondary Guarantees |
— |
— |
— |
|||
|
d.
Indexed Universal Life |
— |
— |
— |
|||
|
e.
Indexed Universal Life with Secondary Guarantees |
— |
— |
— |
|||
|
f.
Indexed Life |
— |
— |
— |
|||
|
g.
Other Permanent Cash Value Life Insurance |
62,570 |
299,114 |
344,540 |
|||
|
h.
Variable Life |
— |
— |
— |
|||
|
i.
Variable Universal Life |
6,200 |
6,200 |
6,200 |
|||
|
j.
Miscellaneous Reserves |
— |
— |
3,517 |
|||
|
(2)
Not Subject to Discretionary Withdrawal or No Cash Value: |
||||||
|
a.
Term Policies without Cash Value |
XXX |
XXX |
334 |
|||
|
b.
Accidental Death Benefits |
XXX |
XXX |
188 |
|||
|
c.
Disability - Active Lives |
XXX |
XXX |
1,027 |
|||
|
d.
Disability - Disabled Lives |
XXX |
XXX |
1,443 |
|||
|
e.
Miscellaneous Reserves |
XXX |
XXX |
5,273 |
|||
|
(3)
Total (gross: direct + assumed) |
280,660 |
517,842 |
615,275 |
|||
|
(4)
Reinsurance Ceded |
280,660 |
517,842 |
615,275 |
|||
|
(5)
Total (net) (3) - (4) |
— |
— |
— |
|||
|
Account Value |
Cash Value |
Reserve | |||
|
(In Thousands)
| |||||
|
Separate Account with Guarantees
|
|||||
|
(1)
Subject to Discretionary Withdrawal, Surrender Values, or Policy Loans:
|
|||||
|
a.
Term Policies with Cash Value |
— |
— |
— | ||
|
b.
Universal Life |
— |
— |
— | ||
|
c.
Universal Life with Secondary Guarantees |
— |
— |
— | ||
|
d.
Indexed Universal Life |
— |
— |
— | ||
|
e.
Indexed Universal Life with Secondary Guarantees |
— |
— |
— | ||
|
f.
Indexed Life |
— |
— |
— | ||
|
g.
Other Permanent Cash Value Life Insurance |
— |
— |
— | ||
|
h.
Variable Life |
— |
— |
— | ||
|
i.
Variable Universal Life |
— |
— |
— | ||
|
j.
Miscellaneous Reserves |
— |
— |
— | ||
|
(2)
Not Subject to Discretionary Withdrawal or No Cash Value: |
|||||
|
a.
Term Policies without Cash Value |
XXX
|
XXX
|
— | ||
|
b.
Accidental Death Benefits |
XXX
|
XXX
|
— | ||
|
c.
Disability - Active Lives |
XXX
|
XXX
|
— | ||
|
d.
Disability - Disabled Lives |
XXX
|
XXX
|
— | ||
|
e.
Miscellaneous Reserves |
XXX
|
XXX
|
— | ||
|
(3)
Total (gross: direct + assumed) |
— |
— |
— | ||
|
(4)
Reinsurance Ceded |
— |
— |
— | ||
|
(5)
Total (net) (3) - (4) |
— |
— |
— | ||
|
Account Value |
Cash Value |
Reserve | |||
|
(In Thousands)
| |||||
|
Separate Account Nonguaranteed
|
|||||
|
(1)
Subject to Discretionary Withdrawal, Surrender Values, or Policy Loans:
|
|||||
|
a.
Term Policies with Cash Value |
$
— |
$
— |
$
— | ||
|
b.
Universal Life |
—
|
—
|
—
| ||
|
c.
Universal Life with Secondary Guarantees |
—
|
—
|
—
| ||
|
d.
Indexed Universal Life |
—
|
—
|
—
| ||
|
e.
Indexed Universal Life with Secondary Guarantees |
—
|
—
|
—
| ||
|
f.
Indexed Life |
—
|
—
|
—
| ||
|
g.
Other Permanent Cash Value Life Insurance |
—
|
—
|
—
| ||
|
h.
Variable Life |
—
|
—
|
—
| ||
|
i.
Variable Universal Life |
35,588
|
35,533
|
35,533
| ||
|
j.
Miscellaneous Reserves |
—
|
—
|
—
| ||
|
(2)
Not Subject to Discretionary Withdrawal or No Cash Value: |
|||||
|
a.
Term Policies without Cash Value |
XXX
|
XXX
|
—
| ||
|
b.
Accidental Death Benefits |
XXX
|
XXX
|
—
| ||
|
c.
Disability - Active Lives |
XXX
|
XXX
|
—
| ||
|
d.
Disability - Disabled Lives |
XXX
|
XXX
|
—
| ||
|
e.
Miscellaneous Reserves |
XXX
|
XXX
|
—
| ||
|
(3)
Total (gross: direct + assumed) |
35,588
|
35,533
|
35,533
| ||
|
(4)
Reinsurance Ceded |
—
|
—
|
—
| ||
|
(5)
Total (net) (3) - (4) |
35,588
|
35,533
|
35,533
| ||
|
Life & Accident
& Health Annual Statement: |
Amount
| |||
|
(In Thousands)
| ||||
|
(1)
|
Exhibit 5, Life Insurance Section,
Total (net) |
$
— | ||
|
(2)
|
Exhibit 5, Accidental Death Benefits
Section, Total (net) |
— | ||
|
(3)
|
Exhibit 5, Disability - Active Lives
Section, Total (net) |
— | ||
|
(4)
|
Exhibit 5, Disability - Disabled Lives
Section, Total (net) |
— | ||
|
(5)
|
Exhibit 5, Miscellaneous Reserves
Section, Total (net) |
— | ||
|
(6)
|
Subtotal (1+2+3+4+5)
|
$
— | ||
|
Separate Accounts Annual
Statement: |
||||
|
(7)
|
Exhibit 3, line 0199999, column 2
|
$
35,533 | ||
|
(8)
|
Exhibit 3, line 0499999, column 2
|
—
| ||
|
(9)
|
Exhibit 3, line 0599999, column 2
|
—
| ||
|
(10)
|
Subtotal (7+8+9) |
$
35,533 | ||
|
(11)
|
Combined total (6+10)
|
$
35,533 | ||
|
Type
|
Gross
|
Net
of Loading | |||
|
(In
Thousands) | |||||
|
December 31, 2023
|
|||||
|
Ordinary renewal |
$
(69,711) |
$
(69,711) | |||
|
Group Life |
45 |
45 | |||
|
Group Annuity |
(112)
|
(112)
| |||
|
Totals |
$
(69,778) |
$
(69,778) | |||
|
December 31, 2022
|
|||||
|
Ordinary renewal |
(50,254)
|
(50,254)
| |||
|
Group Life |
540 |
540 | |||
|
Group Annuity |
(121)
|
(121)
| |||
|
Totals |
$
(49,835) |
$
(49,835) | |||
|
Indexed |
Non-Indexed Guarantee Less than/equal
to 4% |
Non-Guaranteed Separate Accounts
|
Total
| ||||
|
(In
Thousands) | |||||||
|
December 31, 2023
|
|||||||
|
Premium, consideration or deposits
for the year |
$
— |
$
13 |
$
12,430 |
$
12,443 | |||
|
Reserves for separate accounts with
assets at: |
|||||||
|
Fair value
|
$
— |
$
— |
$
18,199,429 |
$
18,199,429 | |||
|
Amortized cost*
|
— |
247,496 |
— |
247,496 | |||
|
Total separate account reserves
|
$
— |
$
247,496 |
$
18,199,429 |
$
18,446,925 | |||
|
Reserves for separate accounts by withdrawal characteristics:
|
|||||||
|
Subject to discretionary withdrawal:
|
|||||||
|
With market value
adjustment* |
$
— |
$
247,496 |
$
— |
$
247,496 | |||
|
At fair value
|
— |
— |
18,199,429 |
18,199,429 | |||
|
Subtotal |
— |
247,496 |
18,199,429 |
18,446,925 | |||
|
Total separate account aggregate reserves
|
$
— |
$
247,496 |
$
18,199,429 |
$
18,446,925 | |||
|
Indexed
|
Non-Indexed
Guarantee Less than/equal to 4% |
Non-Guaranteed
Separate Accounts |
Total
| ||||
|
(In
Thousands) | |||||||
|
December 31, 2022
|
|||||||
|
Premium, consideration or deposits
for the year |
$
— |
$
53 |
$
19,610 |
$
19,663 | |||
|
Reserves for separate accounts with
assets at: |
|||||||
|
Fair value
|
$
— |
$
— |
$
17,902,804 |
$
17,902,804 | |||
|
Amortized cost*
|
— |
285,916 |
— |
285,916 | |||
|
Total separate account reserves
|
$
— |
$
285,916 |
$
17,902,804 |
$
18,188,720 | |||
|
Reserves for separate accounts by
withdrawal characteristics: |
|||||||
|
Subject to discretionary withdrawal:
|
|||||||
|
With market value
adjustment* |
$
— |
$
285,916 |
$
— |
$
285,916 | |||
|
At fair value
|
— |
— |
17,902,804 |
17,902,804 | |||
|
Subtotal |
— |
285,916 |
17,902,804 |
18,188,720 | |||
|
Total separate account aggregate reserves
|
$
— |
$
285,916 |
$
17,902,804 |
$
18,188,720 | |||
|
Product or Transaction
|
Legally Insulated Assets
|
Not Legally Insulated Assets*
| ||
|
(In Thousands) | ||||
|
December 31, 2023 |
||||
|
Individual Annuity |
$
7,126,998 |
$
117,563 | ||
|
Group Annuity |
11,064,808 |
156,805 | ||
|
Individual Life |
9,995 |
— | ||
|
Group Life |
25,592 |
— | ||
|
Total |
$
18,227,393 |
$
274,368 | ||
|
December 31, 2022 |
||||
|
Individual Annuity |
$
7,038,294 |
$
140,949 | ||
|
Group Annuity |
10,862,000 |
180,176 | ||
|
Individual Life |
9,083 |
— | ||
|
Group Life |
23,727 |
— | ||
|
Total |
$
17,933,104 |
$
321,125 | ||
|
* These amounts reflect prescribed practices that depart from the NAIC Accounting Practices and Procedures
Manual, see Note 3 for additional information. | ||||
|
Year ended |
Risk Charges | |
|
(In Thousands) | ||
|
2023 |
$
141,483 | |
|
2022 |
154,011 | |
|
2021 |
166,800 | |
|
2020 |
175,289 | |
|
2019 |
189,437 |
|
Year ended |
Guarantees Paid | |
|
(In Thousands) | ||
|
2023 |
$
32,196 | |
|
2022 |
46,302 | |
|
2021 |
26,078 | |
|
2020 |
33,298 | |
|
2019 |
31,335 | |
|
Year
ended December 31 | |||||
|
2023
|
2022
|
2021
| |||
|
(In
Thousands) | |||||
|
Transfers as Reported in the Summary
of Operations of the Separate Accounts Statement: |
|||||
|
Transfers to separate
accounts |
$
12,386 |
$
19,805 |
$
44,515 | ||
|
Transfers from separate
accounts |
(2,375,019)
|
(2,418,363)
|
(3,335,727)
| ||
|
Transfers as reported in the Statements
of Operations |
$
(2,362,633) |
$
(2,398,558) |
$
(3,291,212) | ||
|
Venerable Insurance and Annuity Company
|
|
|
Corporate Solutions Life Reinsurance
Company |
|
Venerable Insurance and Annuity Company
|
Rocky Range, Inc. |
|
|
Corporate Solutions Life Reinsurance
Company |
|
Year
ended December 31 | |||||
|
2023
|
2022
|
2021
| |||
|
(In
Thousands) | |||||
|
Federal tax benefit on operations
|
$
(6,459) |
$
(42,421) |
$
(39,431) | ||
|
Federal tax expense (benefit) on capital
gain/losses |
6,459
|
42,421
|
39,431
| ||
|
Total current tax expense (benefit)
incurred |
$
— |
$
— |
$
— | ||
|
December
31, 2023 |
December
31, 2022 |
Change
| |||||||||||||||
|
Ordinary
|
Capital
|
Total
|
Ordinary
|
Capital
|
Total
|
Ordinary
|
Capital
|
Total
| |||||||||
|
(In
Thousands) | |||||||||||||||||
|
Gross DTAs |
$
772,336 |
$
— |
$
772,336 |
$
797,152 |
$
— |
$
797,152 |
$
(24,816) |
$
— |
$
(24,816) | ||||||||
|
Statutory Valuation Allowance Adjustments
|
630,820 |
— |
630,820 |
547,630 |
— |
547,630 |
83,190 |
— |
83,190 | ||||||||
|
Adjusted gross DTAs
|
141,516 |
— |
141,516 |
249,522 |
— |
249,522 |
(108,006)
|
— |
(108,006)
| ||||||||
|
Deferred Tax Assets Nonadmitted
|
— |
— |
— |
— |
— |
— |
— |
— |
— | ||||||||
|
Admitted Adjusted Gross DTAs
|
141,516 |
— |
141,516 |
249,522 |
— |
249,522 |
(108,006)
|
— |
(108,006)
| ||||||||
|
Gross Deferred tax liabilities
|
73,991 |
67,525 |
141,516 |
112,003 |
137,519 |
249,522 |
(38,012)
|
(69,994)
|
(108,006)
| ||||||||
|
Net Admitted Adjusted Gross DTAs
|
$
67,525 |
$
(67,525) |
$
— |
$
137,519 |
$
(137,519) |
$
— |
$
(69,994) |
$
69,994 |
$
— | ||||||||
|
December
31, 2023 |
December
31, 2022 |
Change
| ||||||||||||||||
|
Ordinary
|
Capital
|
Total
|
Ordinary
|
Capital
|
Total
|
Ordinary
|
Capital
|
Total
| ||||||||||
|
(In
Thousands) | ||||||||||||||||||
|
a. |
Federal income taxes paid in prior
years recoverable through loss carrybacks |
$
— |
$
— |
$
— |
$
— |
$
— |
$
— |
$
— |
$
— |
$
— | ||||||||
|
b. |
Adjusted gross DTAs expected to be
realized (excluding the amount of DTAs from (a)) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)
|
— |
— |
— |
— |
— |
— |
— |
— |
— | ||||||||
|
1. Adjusted
gross DTAs expected to be realized following the balance sheet date |
— |
— |
— |
— |
— |
— |
— |
— |
— | |||||||||
|
2. Adjusted
gross DTAs allowed per limitation threshold |
XXX
|
XXX
|
270,393 |
XXX
|
XXX
|
310,695 |
XXX
|
XXX
|
(40,302)
| |||||||||
|
c. |
Adjusted gross DTAs (excluding the
amount of DTAs from (a) and (b) above) offset by gross deferred tax liabilities |
141,516 |
— |
141,516 |
249,522 |
— |
249,522 |
(108,006)
|
— |
(108,006)
| ||||||||
|
d. |
Deferred tax assets admitted as the
result of application SSAP No. 101 Total |
$
141,516 |
$
— |
$
141,516 |
$
249,522 |
$
— |
$
249,522 |
$
(108,006) |
$
— |
$
(108,006) | ||||||||
|
2023
|
2022
| ||
|
(Amounts
in Thousands) | |||
|
Ratio percentage used to determine
recovery period and threshold limitation amount |
831.2
% |
1,020.4
% | |
|
Amount of adjusted capital and surplus
used to determine recovery period and threshold limitation |
$
1,802,623 |
$
2,071,299 | |
|
December
31, 2023 |
December
31, 2022 |
Change
| |||||||||
|
Ordinary
|
Capital
|
Ordinary
|
Capital
|
Ordinary
|
Capital
| ||||||
|
(Amounts
in Thousands) | |||||||||||
|
Adjusted gross DTAs
|
$
141,516 |
$
— |
$
249,522 |
$
— |
$
(108,006) |
$
— | |||||
|
Percentage of adjusted gross DTAs
by tax character attributable to the impact of tax planning strategies |
0.00
% |
0.00
% |
0.00
% |
0.00
% |
0.00
% |
0.00
% | |||||
|
Net Admitted Adjusted Gross DTAs
|
$
141,516 |
$
— |
$
249,522 |
$
— |
$
(108,006) |
$
— | |||||
|
Percentage of net admitted adjusted
gross DTAs by tax character admitted because of the impact of tax planning strategies |
0.00
% |
0.00
% |
0.00
% |
0.00
% |
0.00
% |
0.00
% | |||||
|
Does the Company's tax-planning strategies
include the use of reinsurance? |
Yes_____
|
No___X__
| |||||||||
|
December
31, 2023 |
December
31, 2022 |
Change
| |||
|
(In
Thousands) | |||||
|
Deferred Tax Assets
|
|||||
|
Ordinary:
|
|||||
|
Policyholder
reserves |
$
25,929 |
$
50,336 |
$
(24,407) | ||
|
Investments
|
123,899 |
187,757 |
$
(63,858) | ||
|
Deferred acquisition
costs |
— |
1,573 |
$
(1,573) | ||
|
Compensation
and benefits accrual |
3,733 |
3,463 |
$
270 | ||
|
Receivables
- nonadmitted |
64,812 |
1,832 |
$
62,980 | ||
|
Tax credit carry-forward
|
5,895 |
5,600 |
$
295 | ||
|
Net operating
loss |
543,293 |
545,268 |
$
(1,975) | ||
|
Other
|
4,776 |
1,323 |
$
3,453 | ||
|
Subtotal
|
772,336 |
797,152 |
(24,815) | ||
|
Statutory valuation
allowance adjustment |
630,820 |
547,630 |
83,190 | ||
|
Nonadmitted
|
— |
— |
— | ||
|
Admitted ordinary
deferred tax assets |
$
141,516 |
$
249,522 |
$
(108,006) | ||
|
Capital: |
|||||
|
Investments
|
$
— |
$
— |
$
— | ||
|
Subtotal
|
— |
— |
— | ||
|
Statutory valuation
allowance adjustment |
— |
— |
— | ||
|
Admitted capital
deferred tax assets |
$
— |
$
— |
$
— | ||
|
Admitted deferred tax assets
|
$
141,516 |
$
249,522 |
$
(108,006) | ||
|
Deferred Tax Liabilities
|
|||||
|
Ordinary:
|
|||||
|
Investments
|
$
41,562 |
$
50,621 |
$
(9,058) | ||
|
Policyholder
reserves |
13,541 |
39,948 |
(26,406) | ||
|
Other
|
18,888 |
21,434 |
(2,547) | ||
|
Subtotal |
$
73,991 |
$
112,003 |
$
(38,011) | ||
|
Capital: |
|||||
|
Investments
|
$
67,525 |
$
137,519 |
$
(69,994) | ||
|
Other
|
— |
— |
— | ||
|
Subtotal
|
67,525 |
137,519 |
(69,994) | ||
|
Total deferred
tax liabilities |
$
141,516 |
$
249,522 |
$
(108,006) | ||
|
Net deferred tax assets/liabilities
|
$
— |
$
— |
$
— | ||
|
Year
ended December 31 | ||||||||||||
|
2023
|
2022
|
2021
| ||||||||||
|
Amount
|
Effective
Tax Rate |
Amount
|
Effective
Tax Rate |
Amount
|
Effective
Tax Rate | |||||||
|
(Amounts
In Thousands) |
||||||||||||
|
Ordinary income (loss)
|
$
154,757 |
$
158,220 |
$
(744,549) |
|||||||||
|
Capital gain (loss)
|
(246,086)
|
38,977 |
(524,383)
|
|||||||||
|
Total pretax income (loss)
|
(91,329)
|
197,197 |
(1,268,933)
|
|||||||||
|
Expected tax expense (benefit) at
21% statutory rate |
(19,179)
|
21.0
% |
41,411 |
21.0
% |
(266,476)
|
21.0
% | ||||||
|
Increase (decrease) in actual tax
reported resulting from: |
||||||||||||
|
Dividends received deduction
|
(11,349)
|
12.4
% |
(10,899)
|
(5.5)
% |
(23,055)
|
1.8
% | ||||||
|
Interest maintenance reserve
|
(8,892)
|
9.7
% |
(2,632)
|
(1.3)
% |
(21,239)
|
1.7
% | ||||||
|
Hedge losses |
— |
—
% |
— |
—
% |
293,178 |
(23.1)
% | ||||||
|
Reinsurance |
20,160 |
(22.1)
% |
(2,534)
|
(1.3)
% |
(2,534)
|
0.2
% | ||||||
|
Reserve basis change
|
3,334 |
(3.7)
% |
— |
—
% |
— |
—
% | ||||||
|
Change in valuation allowance
|
83,190 |
(91.1)
% |
8,347 |
4.2
% |
178,953 |
(14.1)
% | ||||||
|
Prior year tax |
(1,658)
|
1.8
% |
8,064 |
4.1
% |
3,054 |
(0.2)
% | ||||||
|
Intercompany dividend
|
— |
—
% |
(39,900)
|
(20.2)
% |
637 |
(0.1)
% | ||||||
|
Sec 332 liquidation adjustment
|
— |
—
% |
— |
—
% |
(176,808)
|
13.9
% | ||||||
|
Other |
(80)
|
0.1
% |
(125)
|
(0.1)
% |
(43)
|
—
% | ||||||
|
Total income tax reported
|
$
65,526 |
(71.7)
% |
$
1,732 |
0.9
% |
$
(14,333) |
1.1
% | ||||||
|
Current income taxes incurred
|
$
— |
—
% |
$
— |
—
% |
$
— |
—
% | ||||||
|
Change in deferred income tax*
|
65,526 |
(71.7)
% |
1,732 |
0.9
% |
(14,333)
|
1.1
% | ||||||
|
Total income tax reported
|
$
65,526 |
(71.7)
% |
$
1,732 |
0.9
% |
$
(14,333) |
1.1
% | ||||||
|
Year
of Expiration |
Amount
|
||
|
(In
Thousands) |
|||
|
2041
|
$
4,740 |
||
|
2042
|
1,156
|
||
|
Total |
$
5,896 |
|
Year
of Origination |
Year
of Expiration |
Amount
| ||
|
(In
Thousands) | ||||
|
2018
|
N/A
|
$
468,011 | ||
|
2019
|
N/A
|
653,786
| ||
|
2020
|
N/A
|
87,480
| ||
|
2021
|
N/A
|
1,366,201
| ||
|
2023
|
N/A
|
$
11,632 |
|
December
31 | ||
|
2023
|
2022
| |
|
(In
Thousands) | ||
|
Rocky Range |
$
250 |
$
250 |
|
CSLR |
$
1,203,395 |
$
1,386,448 |
|
Total carrying value of subsidiaries
|
$
1,203,645 |
$
1,386,698 |
|
December
31 | |||
|
2023
|
2022
|
2021
| |
|
(In
Thousands) | |||
|
Revenues |
$
12 |
$
13 |
$
626,085 |
|
Income (Loss) before net realized
gains and losses |
— |
— |
(1,568,111)
|
|
Net (loss) income |
— |
— |
(1,528,815)
|
|
Admitted assets |
250 |
250 |
250 |
|
Liabilities |
— |
— |
— |
|
December
31 | |||
|
2023
|
2022
|
2021
| |
|
(In Thousands)
| |||
|
Revenues |
$
3,462,959 |
$
2,940,751 |
$
15,722,107 |
|
Income (Loss) before net realized
gains and losses |
1,612,659 |
1,046,457 |
(352,196)
|
|
Net (loss) income |
(189,944)
|
1,043,435 |
30,525 |
|
Admitted assets |
21,662,094 |
21,280,612 |
20,868,255 |
|
Liabilities |
20,232,578 |
19,642,055 |
18,965,144 |
|
Aggregate
Fair Value |
Carrying
Value |
Level
1 |
Level
2 |
Level
3 | |||||
|
(In
Thousands) | |||||||||
|
Assets:
|
|||||||||
|
Fixed maturities,
including securities pledged |
$
4,939,775 |
$
5,300,980 |
$
9,565 |
$
4,806,119 |
$
124,091 | ||||
|
Preferred stock
|
36,311 |
36,331 |
7,959 |
27,851 |
501 | ||||
|
Common stock
|
10,000 |
10,000 |
— |
10,000 |
— | ||||
|
Mortgage loans
|
1,120,747 |
1,206,983 |
— |
— |
1,120,747 | ||||
|
Contract loans
|
2,564 |
2,564 |
2,564 |
— |
— | ||||
|
Other invested
assets |
35,949 |
45,212 |
— |
35,949 |
— | ||||
|
Cash, cash equivalents
and short-term investments |
346,725 |
346,724 |
315,320 |
4,943 |
26,462 | ||||
|
Separate account
assets* |
18,489,809 |
18,501,762 |
18,243,005 |
211,675 |
35,129 | ||||
|
Total assets |
$
24,981,880 |
$
25,450,556 |
$
18,578,413 |
$
5,096,537 |
$
1,306,930 | ||||
|
Liabilities:
|
|||||||||
|
Deposit type
contracts |
$
12,794 |
$
12,136 |
$
— |
$
— |
$
12,794 | ||||
|
Total liabilities |
$
12,794 |
$
12,136 |
$
— |
$
— |
$
12,794 | ||||
|
* These amounts reflect prescribed or permitted practices that depart from the NAIC
Accounting Practices and Procedures Manual, see Note 3, Summary of Significant Accounting Polices for additional information.
| |||||||||
|
Aggregate
Fair Value |
Carrying
Value |
Level
1 |
Level
2 |
Level
3 | |||||
|
(In
Thousands) | |||||||||
|
Assets:
|
|||||||||
|
Fixed maturities,
including securities pledged |
$
7,770,796 |
$
8,513,944 |
$
20,141 |
$
7,594,572 |
$
156,083 | ||||
|
Preferred stock
|
51,126 |
45,310 |
7,036 |
38,413 |
5,678 | ||||
|
Common stock
|
10,000 |
10,000 |
— |
10,000 |
— | ||||
|
Mortgage loans
|
1,682,889 |
1,788,620 |
— |
3,378 |
1,679,511 | ||||
|
Contract loans
|
3,283 |
3,283 |
3,283 |
— |
— | ||||
|
Other invested
assets |
66,322 |
81,097 |
— |
66,322 |
— | ||||
|
Cash, cash equivalents
and short-term investments |
153,441 |
153,462 |
138,786 |
1,811 |
12,844 | ||||
|
Separate account
assets* |
18,235,611 |
18,254,229 |
17,945,123 |
246,531 |
43,957 | ||||
|
Total assets |
$
27,973,468 |
$
28,849,945 |
$
18,114,369 |
$
7,961,027 |
$
1,898,073 | ||||
|
Liabilities:
|
|||||||||
|
Deposit type
contracts |
$
1,130,015 |
$
1,128,799 |
$
— |
$
— |
$
1,130,015 | ||||
|
Total liabilities |
$
1,130,015 |
$
1,128,799 |
$
— |
$
— |
$
1,130,015 | ||||
|
* These amounts reflect prescribed or permitted practices that depart from the NAIC
Accounting Practices and Procedures Manual, see Note 3 for additional information. | |||||||||
|
Level
1 |
Level
2 |
Level
3 |
Total
| ||||
|
(In
Thousands) | |||||||
|
Assets:
|
|||||||
|
Bonds
|
|||||||
|
Industrial and
Misc |
— |
11,805 |
— |
11,805 | |||
|
Total Bonds
|
— |
11,805 |
— |
11,805 | |||
|
Preferred stock
|
7,959 |
25,763 |
— |
33,722 | |||
|
Common stock
|
— |
10,000 |
— |
10,000 | |||
|
Other long-term
assets |
— |
4,144 |
— |
4,144 | |||
|
Separate account
assets* |
18,227,393 |
— |
— |
18,227,393 | |||
|
Total assets |
$
18,235,352 |
$
51,712 |
$
— |
$
18,287,064 | |||
|
Liabilities:
|
|||||||
|
Total liabilities |
$
— |
$
— |
$
— |
$
— | |||
|
* These amounts reflect prescribed or permitted practices that depart from the NAIC
Accounting Practices and Procedures Manual, see Note 3 for additional information. | |||||||
|
Level
1 |
Level
2 |
Level
3 |
Total
| ||||
|
(In
Thousands) | |||||||
|
Assets:
|
|||||||
|
Bonds
|
|||||||
|
Industrial and
Misc |
— |
11,046 |
— |
11,046 | |||
|
Total Bonds
|
— |
11,046 |
— |
11,046 | |||
|
Preferred stock
|
7,036 |
24,965 |
— |
32,001 | |||
|
Common stock
|
— |
10,000 |
— |
10,000 | |||
|
Separate account
assets* |
17,933,104 |
— |
— |
17,933,104 | |||
|
Total assets |
$
17,940,140 |
$
46,011 |
$
— |
$
17,986,151 | |||
|
Liabilities:
|
|||||||
|
Total liabilities |
$
— |
$
— |
$
— |
$
— | |||
|
* These amounts reflect prescribed or permitted practices that depart from the NAIC
Accounting Practices and Procedures Manual, see Note 3 for additional information. | |||||||
|
Description
|
Beginning of the
Year |
Transfers into
Level 3 |
Transfers Out
of Level 3 |
Total Gains and
(Losses) Included in Net Income |
Total Gains and
(Losses) Included in Surplus |
Purchases
|
Issuances
|
Sales
|
Settlements
|
End of the Year
| ||||||||||
|
(In
Thousands) | ||||||||||||||||||||
|
Preferred Stock |
— |
4 |
— |
— |
— |
— |
— |
(4)
|
— |
— | ||||||||||
|
Common Stock |
12 |
— |
— |
— |
— |
— |
— |
(12)
|
— |
— | ||||||||||
|
Separate accounts* |
1,690 |
— |
— |
— |
— |
— |
— |
(1,690)
|
— |
— | ||||||||||
|
Total |
$
1,702 |
$
4 |
$
— |
$
— |
$
— |
$
— |
$
— |
$
(1,706) |
$
— |
$
— | ||||||||||
|
* These amounts reflect prescribed
or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3, Summary of Significant Accounting
Polices for additional information. | ||||||||||||||||||||
|
Year
ended December 31 | ||||
|
2023
|
2022
|
|||
|
(In
Thousands) | ||||
|
Assets recognized from paid and accrued premium tax
offsets beginning of year |
$
462 |
$
522 |
||
|
Decreases current year:
|
||||
|
Premium tax
offset applied |
31 |
43 |
||
|
Changes in premium
tax offset capacity/other adjustments |
1 |
29 |
||
|
Increases current year:
|
||||
|
GFA Liability
Adjustment to estimate |
— |
9 |
||
|
Creditable assessments
remitted |
— |
3 |
||
|
Assets recognized from paid and accrued premium tax
offsets end of year |
$
431 |
$
462 |
||
|
Discount Rate Applied
|
2.50
% |
|
Discount Rate Applied
|
2.50% |
|
The undiscounted and discounted amount
of the guaranty fund assessments and related assets by insolvency: | ||||||
|
Guaranty Fund
Assessment |
Related Assets
| |||||
|
Name of Insolvency |
Undiscounted
|
Discounted
|
Undiscounted
|
Discounted
| ||
|
(In Thousands)
| ||||||
|
$
— |
$
— |
$
— |
$
— | |||
|
Senior American Insurance Company
|
$
3 |
$
2 |
$
3 |
$
2 | ||
|
Investment Income Earned:
|
|
|
U.S. government
bonds |
$
286 |
|
Other bonds (unaffiliated)
|
293,825 |
|
Bonds of affiliates
|
38,701 |
|
Preferred stocks
(unaffiliated) |
1,943 |
|
Common stocks (unaffiliated)
|
150 |
|
Common stocks
of affiliates |
— |
|
Mortgage loans
|
64,942 |
|
Contract loans
|
40 |
|
Cash on hand and
on deposit |
7,942 |
|
Short-term investments
|
6,219 |
|
Other invested
assets |
16,423 |
|
Gross investment income
|
$
430,471 |
|
Mortgage Loans (Book Value):
|
|
|
Commercial mortgages
|
$
1,206,983 |
|
Total mortgage loans
|
$
1,206,983 |
|
Mortgage Loans by Standing (Book
Value): |
|
|
Good standing
|
$
1,206,983 |
|
Total mortgage loans by standing
|
$
1,206,983 |
|
Other long-term assets (statement
value) |
$
45,566 |
|
Contract loans |
$
2,564 |
|
Bonds and Stocks of Parents, Subsidiaries
and Affiliates (Book Value): |
|
|
Bonds
|
$
592,424 |
|
Common Stocks
|
1,293,586 |
|
Total Bonds and Stocks of Parents,
Subsidiaries and Affiliates |
$
1,886,010 |
|
Bonds and Short-term Investments
by NAIC Designation and Maturity: |
|
|
Bonds and Short-term
Investments by Maturity (Statement Value): |
|
|
Due
within 1 year or less |
$
477,813 |
|
Over
1 year through 5 years |
1,905,635 |
|
Over
5 years through 10 years |
1,638,328 |
|
Over
10 years through 20 years |
810,089 |
|
Over
20 years |
474,057 |
|
Total by maturity
|
$
5,305,922 |
|
Bonds and Short-term
Investments by NAIC Designation (Statement Value): |
|
|
NAIC 1
|
$
2,799,331 |
|
NAIC 2
|
2,339,734 |
|
NAIC 3
|
110,893 |
|
NAIC 4
|
47,692 |
|
NAIC 5
|
4,199 |
|
NAIC 6
|
4,073 |
|
Total by NAIC
Designation |
$
5,305,922 |
|
Total bonds and short-term investments
publicly traded |
$
1,364,033 |
|
Total bonds and short-term investments
privately placed |
$
3,941,889 |
|
Preferred stocks (statement value)
|
$
36,331 |
|
Common stocks, including subsidiaries
(market value) |
$
1,303,586 |
|
Short-term investments (book value)
|
$
31,404 |
|
Cash equivalents |
$
315,170 |
|
Financial options owned (statement
value) |
$
— |
|
Financial options written and in
force (statement value) |
$
— |
|
Financial collar, swap and forward
agreements open (statement value) |
$
— |
|
Financial futures contracts open
(current value) |
$
— |
|
Cash on deposit |
$
981 |
|
Life Insurance in Force:
|
|
|
Ordinary
|
$
1,566 |
|
Group life
|
$
52 |
|
Amount of accidental death insurance
in force under ordinary policies |
$
28 |
|
Life Insurance Policies with Disability
Provisions in Force: |
|
|
Ordinary
|
$
46 |
|
Group life
|
$
— |
|
Supplementary Contracts in Force:
|
|
|
Ordinary-not
involving life contingencies: |
|
|
Amount on deposit
|
$
693 |
|
Income payable
|
$
60,922 |
|
Ordinary-involving life contingencies:
|
|
|
Amount on deposit
|
$
— |
|
Amount of income
payable |
$
57,619 |
|
Group-not involving life contingencies:
|
|
|
Amount on deposit
|
$
— |
|
Amount of income
payable |
$
— |
|
Group-involving life contingencies:
|
|
|
Amount on deposit
|
$
— |
|
Amount of income
payable |
$
— |
|
Annuities: |
|
|
Ordinary:
|
|
|
Immediate-amount
of income payable |
$
18,635 |
|
Deferred-fully
paid account balance |
$
10,698,799 |
|
Deferred-not
fully paid account balance |
$
4,245,926 |
|
Group:
|
|
|
Amount of income
payable |
$
3 |
|
Fully paid
account balance |
$
11,178,052 |
|
Not fully paid
account balance |
$
137,779 |
|
Accident and Health Insurance Premiums
in Force: |
|
|
Ordinary
|
$
— |
|
Group
|
$
— |
|
Deposit Funds and Dividend Accumulations:
|
|
|
Deposit funds-account
balance |
$
— |
|
Dividend accumulations-account
balance |
$
— |
|
Issuer
|
Investment
Category |
Amount
|
Percentage
of Total Admitted Assets* | ||||
|
i. |
Corporate Solutions Life Reinsurance
Company |
Common Stock |
$
1,293,336 |
15.0
% | |||
|
ii. |
BNY Mellon Cash Reserve USD
|
Money Market Mutual Fund
|
184,414 |
2.1 | |||
|
iii. |
Ace Credit Fund, LP
|
Bonds |
131,410 |
1.5 | |||
|
iv. |
AP Tundra Holdings LLC
|
Bonds |
130,120 |
1.5 | |||
|
v. |
DWS Government Money Market Series
- Institutional |
Money Market Mutual Fund
|
120,429 |
1.4 | |||
|
vi. |
Cayman Universe Holdings
LLC |
Bonds |
111,828 |
1.3 | |||
|
vii. |
SVF II Finco (Cayman) LP
|
Bonds |
108,009 |
1.3 | |||
|
viii. |
H&R NNN POOL 3 |
Mortgage Loans |
82,996 |
1.0 | |||
|
ix. |
Aa Infrastructure Fund 1 Ltd
|
Bonds |
79,772 |
0.9 | |||
|
x. |
Trademark Royalty 2018-1 LLC
|
Bonds |
52,917 |
0.6 |
|
Bonds
|
Preferred
Stocks | |||||||||
|
NAIC
Rating |
Amount
|
Percentage
of Total Admitted Assets* |
NAIC
Rating |
Amount
|
Percentage
of Total Admitted Assets* | |||||
|
NAIC-1
|
$
2,799,331 |
32.5%
|
P/RP-1
|
$
2,609 |
—%
| |||||
|
NAIC-2
|
2,339,734 |
27.2
|
P/RP-2
|
33,722 |
0.4
| |||||
|
NAIC-3
|
110,893 |
1.3
|
P/RP-3
|
— |
0.0
| |||||
|
NAIC-4
|
47,692 |
0.6
|
P/RP-4
|
— |
—
| |||||
|
NAIC-5
|
4,199 |
0.0
|
P/RP-5
|
— |
—
| |||||
|
NAIC-6
|
4,073 |
0.0
|
P/RP-6
|
— |
—
| |||||
|
$
5,305,922 |
$
36,331 |
|||||||||
|
Amount
|
Percentage
of Total Admitted Assets* | |||
|
i. |
Countries rated NAIC-1
|
$
1,786,524 |
20.7%
| |
|
ii. |
Countries rated NAIC-2
|
124,947 |
1.5
| |
|
iii. |
Countries rated NAIC-3 or below
|
57,334 |
0.7
|
|
Amount
|
Percentage
of Total Admitted Assets* | |||
|
i. |
Countries Rated NAIC-1:
|
|||
|
Country: Cayman
Islands |
$
828,413 |
9.6%
| ||
|
Country: Australia
|
207,812 |
2.4
| ||
|
ii. |
Countries Rated NAIC-2:
|
|||
|
Country: Mexico
|
44,933 |
0.5
| ||
|
Country: Indonesia
|
27,421 |
0.3
| ||
|
iii. |
Countries Rated NAIC-3 or Below:
|
|||
|
Country: Marshall
Islands |
30,000 |
0.3
| ||
|
Country: Colombia
|
13,918 |
0.2
|
|
Name
|
NAIC
Rating |
Amount
|
Percentage
of Total Admitted Assets* | ||||
|
i. |
Cayman Universe Holdings
LLC |
1
|
$
111,828 |
1.3%
| |||
|
ii. |
SVF II Finco (Cayman) LP
|
1
|
108,009 |
1.3
| |||
|
iii. |
AA Infrastructure Fund 1 Ltd
|
1
|
79,772 |
0.9
| |||
|
iv. |
RR 19, Ltd |
1,2
|
37,110 |
0.4
| |||
|
v. |
Seaspan Holdco III Ltd.
|
2
|
30,000 |
0.3
| |||
|
vi. |
Severn Trent Water Limited
|
2
|
26,000 |
0.3
| |||
|
vii. |
HSBC Holdings plc |
1,2
|
24,720 |
0.3
| |||
|
viii. |
Diameter Credit Funding I Ltd
|
1
|
24,434 |
0.3
| |||
|
ix. |
Powerco Limited |
2
|
22,200 |
0.3
| |||
|
x. |
Australia Pacific LNG Processing Pty
Limited |
2
|
20,685 |
0.2
|
|
Amount |
Percentage of Total Admitted Assets*
| |||
|
i. |
Corporate Solutions Life Reinsurance Company |
$
1,293,336 |
15.02% | |
|
ii. |
The Doctors Company |
20,000 |
0.23 | |
|
iii. |
The Bank of New York Mellon Corporation |
16,395 |
0.19 | |
|
iv. |
Federal Home Loan Bank of des Moines |
10,000 |
0.12 | |
|
v. |
New York Life Insurance Company |
8,598 |
0.10 | |
|
vi. |
The Charles Schwab Corporation |
7,393 |
0.09 | |
|
vii. |
Teachers Insurance and Annuity Association of America |
5,109 |
0.06 | |
|
viii. |
Enstar Group Limited |
5,080 |
0.06 | |
|
ix. |
Massachusetts Mutual Life Insurance Company |
4,962 |
0.06 | |
|
x. |
Oconee Real Estate Holdings Iv Arb Llc |
4,144 |
0.05 |
|
Type/Property
|
Amount
|
Percentage
of Total Admitted Assets* | |||
|
i. |
H&R NNN POOL 3 |
$
82,996 |
1.0%
| ||
|
ii. |
RENAISSANCE SQUARE |
40,005 |
0.5
| ||
|
iii. |
181 Fremont Office Senior Mezz LLC
|
35,152 |
0.4
| ||
|
iv. |
666 5TH AVENUE |
30,692 |
0.4
| ||
|
v. |
AON CENTER |
30,000 |
0.3
| ||
|
vi. |
Win Ridge Shopping Center-DE LLC
|
28,240 |
0.3
| ||
|
vii. |
Hpa Jv Borrower 2019-1 Ath Llc
|
27,819 |
0.3
| ||
|
viii. |
WALT DISNEY WORLD SWAN & DOLPHIN
|
20,296 |
0.2
| ||
|
ix. |
Mericle 3 Great Valley, LLC
|
19,461 |
0.2
| ||
|
x. |
SIC - Mills Building II, LLC
|
18,000 |
0.2
| ||
|
Amount
|
Percentage
of Total Admitted Assets* | |||
|
i. Construction loans
|
$
— |
—
| ||
|
ii. Mortgage loans over
90 days past due |
— |
—
| ||
|
iii. Mortgage loans in
the process of foreclosure |
— |
—
| ||
|
iv. Mortgage loans foreclosed
|
— |
—
| ||
|
v. Restructured mortgage
loans |
— |
—
|
|
Residential
|
Commercial
|
Agricultural
| |||||||||||
|
Loan-to-Value
|
Amount
|
Percentage
of Total Admitted Assets* |
Amount
|
Percentage
of Total Admitted Assets* |
Amount
|
Percentage
of Total Admitted Assets* | |||||||
|
i. |
above 95%
|
$
— |
—%
|
$
37,340 |
0.4%
|
$
— |
—%
| ||||||
|
ii. |
91% to 95%
|
— |
—
|
— |
—
|
— |
—
| ||||||
|
iii. |
81% to 90%
|
— |
—
|
— |
0.0
|
— |
—
| ||||||
|
iv. |
71% to 80%
|
5,612 |
6.5
|
81,536 |
0.9
|
— |
—
| ||||||
|
v. |
below 70%
|
16,842 |
19.6
|
1,065,654 |
12.4
|
— |
—
| ||||||
|
$
22,454 |
$
1,184,530 |
$
— |
|||||||||||
|
Unaudited
At End of Each Quarter | ||||||||||
|
At
Year End |
1st
Quarter |
2nd
Quarter |
3rd
Quarter | |||||||
|
Amount
|
Percentage
of Total Admitted Assets* |
Amount
|
Amount
|
Amount
| ||||||
|
i. |
Securities lending (do not include
assets held as collateral for such transactions) |
$
— |
—%
|
$
— |
$
— |
$
— | ||||
|
ii. |
Repurchase agreements
|
— |
—
|
— |
— |
— | ||||
|
iii. |
Reverse repurchase agreements
|
— |
—
|
— |
— |
— | ||||
|
iv. |
Dollar repurchase agreements
|
— |
—
|
— |
— |
— | ||||
|
v. |
Dollar reverse repurchase agreements
|
— |
—
|
— |
— |
— | ||||
|
Owned
|
Written
| |||||||
|
Amount
|
Percentage
of Total Admitted Assets* |
Amount
|
Percentage
of Total Admitted Assets* | |||||
|
i. |
Hedging |
$
— |
—%
|
$
— |
0.0%
| |||
|
ii. |
Income generation |
— |
—
|
— |
—
| |||
|
iii. |
Other |
— |
—
|
— |
—
| |||
|
Unaudited
At End of Each Quarter | ||||||||||
|
At
Year End |
1st
Quarter |
2nd
Quarter |
3rd
Quarter | |||||||
|
Amount
|
Percentage
of Total Admitted Assets* |
Amount
|
Amount
|
Amount
| ||||||
|
i. |
Hedging |
$
— |
—%
|
$
— |
$
— |
$
— | ||||
|
ii. |
Income Generation |
— |
—
|
— |
— |
— | ||||
|
iii. |
Replications |
— |
—
|
— |
— |
— | ||||
|
iv. |
Other |
— |
—
|
— |
— |
— | ||||
|
Unaudited
At End of Each Quarter | ||||||||||
|
At
Year End |
1st
Quarter |
2nd
Quarter |
3rd
Quarter | |||||||
|
Amount
|
Percentage
of Total Admitted Assets* |
Amount
|
Amount
|
Amount
| ||||||
|
i. |
Hedging |
$
— |
—%
|
$
— |
$
— |
$
— | ||||
|
ii. |
Income Generation |
— |
—
|
— |
— |
— | ||||
|
iii. |
Replications |
— |
—
|
— |
— |
— | ||||
|
iv. |
Other |
— |
—
|
— |
— |
— | ||||
|
Gross
Investment Holdings* |
Admitted Assets as Reported in the Annual
Statement | ||||||||||
|
Investment
Categories |
Amount
|
Percentage
of Total |
Amount
|
Securities
Lending Reinvested Collateral Amount |
Total
Amount |
Percentage
of Total | |||||
|
Long-Term Bonds (Schedule D, Part
1) |
|||||||||||
|
U.S. governments |
$
9,755 |
0.1
% |
$
9,755 |
$
— |
$
9,755 |
0.1
% | |||||
|
All Other governments
|
82,536 |
0.9
% |
82,536 |
— |
82,536 |
1.0
% | |||||
|
U.S. states, territories and possessions,
etc. guaranteed |
19,903 |
0.2
% |
19,903 |
— |
19,903 |
0.2
% | |||||
|
U.S. political subdivisions of states,
territories and possessions, guaranteed |
48,185 |
0.5
% |
48,185 |
— |
48,185 |
0.6
% | |||||
|
U.S. special revenue and special assessment
obligations, etc. non-guaranteed |
3,183 |
—
% |
3,183 |
— |
3,183 |
—
% | |||||
|
Industrial and miscellaneous
|
4,463,511 |
50.9
% |
4,463,511 |
— |
4,463,511 |
52.7
% | |||||
|
Hybrid securities |
67,331 |
0.8
% |
67,331 |
— |
67,331 |
0.8
% | |||||
|
Parent, subsidiaries and affiliates
|
592,424 |
6.8
% |
592,424 |
— |
592,424 |
7.0
% | |||||
|
Unaffiliated Bank loans
|
14,151 |
0.2
% |
14,151 |
— |
14,151 |
0.2
% | |||||
|
Total long-term bonds
|
5,300,979 |
60.4
% |
5,300,979 |
— |
5,300,979 |
62.6
% | |||||
|
Preferred stocks (Schedule D Part
2, Section 1) |
|||||||||||
|
Industrial and miscellaneous (Unaffiliated)
|
36,331 |
0.4
% |
36,331 |
— |
36,331 |
0.4
% | |||||
|
Total preferred stocks
|
36,331 |
0.4
% |
36,331 |
— |
36,331 |
0.4
% | |||||
|
Common stocks (Schedule D Part 2,
Section 2) |
|||||||||||
|
Industrial and miscellaneous other
(Unaffiliated) |
10,000 |
0.1
% |
10,000 |
— |
10,000 |
0.1
% | |||||
|
Parent, subsidiaries and affiliates
Other |
1,293,586 |
14.7
% |
1,293,586 |
— |
1,293,586 |
15.3
% | |||||
|
Total common stocks
|
1,303,586 |
14.8
% |
1,303,586 |
— |
1,303,586 |
15.4
% | |||||
|
Mortgage loans (Schedule B)
|
|||||||||||
|
Residential mortgages
|
22,454 |
0.3
% |
22,454 |
— |
22,454 |
0.3
% | |||||
|
Commercial mortgages
|
1,184,529 |
13.5
% |
1,184,529 |
1,184,529 |
14.0
% | ||||||
|
Total mortgage loans
|
1,206,983 |
13.8
% |
1,206,983 |
— |
1,206,983 |
14.2
% | |||||
|
Cash, cash equivalents and short-term
investments |
|||||||||||
|
Cash (Schedule E, Part 1)
|
981 |
—
% |
981 |
— |
981 |
—
% | |||||
|
Cash equivalents (Schedule E, Part
2) |
315,170 |
3.6
% |
315,170 |
— |
315,170 |
3.7
% | |||||
|
Short-term investments (Schedule DA)
|
331,404 |
3.8
% |
31,404 |
— |
31,404 |
0.4
% | |||||
|
Total cash, cash equivalents and short-term
investments |
647,555 |
7.4
% |
347,555 |
— |
347,555 |
4.1
% | |||||
|
Contract loans |
2,564 |
—
% |
2,564 |
— |
2,564 |
—
% | |||||
|
Other invested assets (Schedule BA)
|
271,687 |
3.1
% |
271,687 |
— |
271,687 |
3.2
% | |||||
|
Receivables for securities
|
4,511 |
0.1
% |
4,511 |
—
|
4,511 |
0.1
% | |||||
|
Total invested assets
|
$
8,774,196 |
100.0
% |
$
8,474,196 |
$
— |
$
8,474,196 |
100.0
% | |||||
|
Type
of contract: |
Response:
|
Identify
reinsurance contract(s): |
Has
the insured event(s) triggering contract coverage been recognized? |
|
Assumption reinsurance
– new for the reporting period |
Yes No ☑
|
N/A
|
Yes
No N/A ☑ |
|
Non-proportional
reinsurance, which does not result in significant surplus relief |
Yes No ☑
|
N/A
|
Yes
No N/A ☑ |
Part C
OTHER INFORMATION
| Item 27. | Exhibits |
| Item 28. | Directors and Officers of the Depositor |
| Name and Principal Business Address | Positions and Offices with Depositor |
| Peter C. Aberg, 590 Madison Avenue, 29h Floor, New York, NY 10022 | Director |
| Daniel G. Kilpatrick, 590 Madison Avenue, 42nd Floor, New York, NY 10022 | Director |
| Brenna Haysom Romando, 47 Ronald Reagan Blvd., Warwick, NY 10990 | Director |
| Nedim (Ned) Sadaka, 895 Park Avenue, New York, NY 10075 | Director |
| Howard L. Shecter, 210 W. Rittenhouse Square, Philadelphia, PA 19103 | Director and Chairperson of the Board |
| Vishal N. Sheth, 9 West 57th Street, New York, NY 10019 | Director |
| Jasjit Singh, 9 West 57th Street, New York, NY 10019 | Director |
| Catherine A. Mahone, 699 Walnut Street, Suite 1350, Des Moines, IA 50309 | President and Chief Executive Officer |
| David P. Wiland, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Executive Vice President and Chief Financial Officer |
| Kenneth L. Brown, 699 Walnut Street, Suite 1350, Des Moines, IA 50309 | Executive Vice President and Chief Operations Officer |
| Thomas N. Hanson, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Executive Vice President and Chief Risk Officer |
| Timothy W. Brown, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Executive Vice President, Chief Legal Officer and Secretary |
| Heather A. Kleis, 699 Walnut Street, Suite 1350, Des Moines, IA 50309 | Executive Vice President and Chief Human Resources Officer |
| Timothy D. Billow, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Executive Vice President and Chief Information Officer |
| Lindsey A. Bollinger, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Executive Vice President and Chief Implementation Officer |
| Gregory S. Smith, Jr., 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Senior Vice President and Chief Accounting Officer |
| Kristi L. Harding, 699 Walnut Street, Suite 1350, Des Moines, IA 50309 | Senior Vice President, Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer |
| Parul Bhatia, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Senior Vice President, Chief Actuary and Appointed Actuary |
| John E. Herlihy, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 |
Senior Vice President, Head of Trading and Co-Head of Hedging
|
| Glenn A. Black, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Head of Tax |
| Kelly M. Hennigan, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Head of Investment Operations |
| Simon B. Scully, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Chief Information Security Officer |
| Richard E. Gelfand, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President |
| Ross R. Boudiab, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Treasurer |
| James R. Eckis, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Assistant Treasurer |
| Janet E. Myers, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Assistant Treasurer |
| Brian T. Ruck, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Assistant Treasurer |
| Jennifer M. Ogren, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Assistant Secretary |
| Lee M. Barnard, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Assistant Secretary |
| J. Neil McMurdie, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Assistant Secretary |
| Ron J. Tanner, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Assistant Secretary |
| Jay M. Lemoncelli, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Assistant Secretary |
| Lori L. DeMarco, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Assistant Secretary |
| Item 29. | Persons Controlled by or Under Common Control with the Depositor or the Registrant |
| 1. | The Registrant, Separate Account EQ, is a segregated asset account of Venerable Insurance and Annuity Company (“VIAC” or the “Company”) (IA) and is therefore owned and controlled by VIAC. |
| 2. | The Depositor, VIAC, is a wholly-owned subsidiary of Venerable Holdings, Inc. (DE) |
| 3. | VIAC Services Company (DE) and Directed Services LLC (DE), and Venerable Investment Advisers, LLC (DE) are affiliates of VIAC and wholly-owned subsidiaries of Venerable Holdings, Inc. |
| 4. | Rocky Range, Inc. (AZ) and Corporate Solutions Life Reinsurance Company (DE) are wholly-owned subsidiaries of VIAC. |
| Item 30. | Indemnification |
VIAC shall indemnify to the full extent permitted by Chapter 490 of the Code of Iowa, as may be amended from time to time, or by other provisions of applicable law, each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, wherever brought, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was a director, officer, fiduciary or employee of the Company, or is or was serving at the request of the Company as a director, officer, fiduciary, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding, if he or she acted in good faith and in a manner reasonably believed to be in and not opposed to the best interests of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.
Any indemnification as described in the preceding paragraph (unless ordered by a court) shall be made by the Company only as authorized in the specific case upon a determination that the indemnification is proper in the circumstances because the person claiming indemnification has met the applicable standard of conduct set forth in therein. Such determination shall be made by the Company’s Board of Directors by a majority vote of a quorum consisting of Directors who were not parties to the action, suit or proceeding in question. If such a quorum is not obtainable, the Board shall retain independent legal counsel who shall make such a determination in a written opinion.
Expenses (including attorney’s fees) incurred in defending a civil or criminal action, suit, or proceeding may be paid by the Company in advance of the final disposition of such action upon receipt of an undertaking by or on behalf of a person entitled to claim indemnification to repay such amount, if it is ultimately determined that he or she is not entitled to be indemnified by the Company.
To the extent permitted by law, the Company or its parents may purchase and maintain insurance on behalf of any person or persons described in the preceding paragraphs of this Item 30 against any liability asserted against and incurred by him or her, whether or not the Company would have power to indemnify him or her as described above.
Consistent with the laws of the State of Iowa, VA Capital Company LLC (“VA Capital”) maintains various insurance policies issued by reputable insurers covering VA Capital and any company in which VA Capital has a controlling interest, including VIAC and Directed Services LLC, the principal underwriter. These policies cover the indemnification obligations of VA Capital and its subsidiaries. The policies include, but are not limited to, the following types of coverages: Professional Liability, Directors & Officers Liability, Cyber Liability, Employment Practices Liability, Fiduciary Liability, and Financial Institutional Bond.
Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the Company separate account (the “Registrant”), as provided above or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification by the Depositor is against public policy, as expressed in the Securities Act of 1933, and therefore may be unenforceable. In the event that a claim of such indemnification (except insofar as it provides for the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted against the Depositor by such director, officer or controlling person and the SEC is still of the same opinion, the Depositor or Registrant may, 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 such indemnification by the Depositor is against public policy as expressed by the Securities Act of 1933 and will be governed by the final adjudication of such issue.
| Item 31. | Principal Underwriter |
| (a) | Directed Services LLC also serves as principal underwriter for all contracts issued by Venerable Insurance and Annuity Company through its Separate Accounts A, B, U, and the Alger Separate Account A. |
| (b) | The following information is furnished with respect to the principal officers and directors of Directed Services, LLC, the Registrant’s Distributor. |
| Name and Principal Business Address | Positions and Offices with Underwriter |
| Kenneth L. Brown, 699 Walnut Street, Suite 1350, Des Moines, IA 50309 | Director and Chairperson of the Board, President and Chief Executive Officer |
| David P. Wiland, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Director |
| Richard E. Gelfand, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Chief Financial Officer, Treasurer, and Assistant Secretary |
| Kristi L. Harding, 699 Walnut Street, Suite 1350, Des Moines, IA 50309 | Senior Vice President, Chief Compliance Officer, Assistant Secretary, and Anti-Money Laundering Officer |
| Simon B. Scully, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President and Chief Information Security Officer |
| Janet E. Myers, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Assistant Treasurer and Assistant Secretary |
| J. Neil McMurdie, 1475 Dunwoody Drive, Suite 200, West Chester, PA 19380 | Vice President, General Counsel, and Secretary |
| (c) | Compensation from the Registrant. |
The principal underwriter received the following compensation, directly or indirectly, from the Registrant during the Registrant’s last fiscal year:
|
(1)
Name of Principal Underwriter |
(2)
Net Underwriting Discounts |
(3)
Compensation on Redemption |
(4)
Brokerage Commissions |
(5)
Other Compensation |
| Directed Services LLC | $ | $ | $101,023,948 | $ |
| Item 32. | Location of Accounts and Records |
Contained in the Registrant’s most recently filed report on Form N-CEN.
| Item 33. | Management Services |
None.
| Item 34. | Fee Representation |
Venerable Insurance and Annuity Company hereby represents that the fees and charges deducted under the Contracts described in the Prospectus, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred and the risks assumed by Venerable Insurance and Annuity Company.
SIGNATURES
(Accumulator 6.0)
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Separate Account EQ of Venerable Insurance and Annuity Company, has duly caused this Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the town of Glastonbury, Connecticut, on the 3rd day of May, 2024.
| SEPARATE ACCOUNT B OF VENERABLE INSURANCE AND ANNUITY COMPANY | VENERABLE INSURANCE AND ANNUITY COMPANY | ||||
| (Registrant) | (Depositor) | ||||
| By: | /s/ Catherine A. Mahone* | By: | /s/ Catherine A. Mahone* | ||
| Catherine A. Mahone | Catherine A. Mahone | ||||
|
President of the Depositor (principal executive officer of the Depositor) |
President (principal executive officer) | ||||
Pursuant to the requirements of the Securities Act of 1933, this Pre-Effective Amendment No. 1 to the Registration Statement has been signed below by the following persons in the capacities and on the date indicated.
| Signature | Title | |||
| /s/ Catherine A. Mahone* | President and Chief Executive Officer | |||
| Catherine A. Mahone | (principal executive officer) | |||
| /s/ David P. Wiland* | Executive Vice President and Chief Financial Officer | |||
| David P. Wiland | ||||
| /s/ Gregory S. Smith* | Senior Vice President and Chief Accounting Officer | |||
| Gregory S. Smith | (principal accounting officer) | |||
| /s/ Peter C. Aberg* | Director | |||
| Peter C. Aberg | May 3, 2024 | |||
| /s/ Brenna Haysom Romando* | Director | |||
| Brenna Haysom Romando | ||||
| /s/ Daniel G. Kilpatrick* | Director | |||
| Daniel G. Kilpatrick | ||||
| /s/ Nedim Sadaka* | Director | |||
| Nedim (Ned) Sadaka | ||||
| /s/ Howard L. Shecter* | Director | |||
| Howard L. Shecter | ||||
| /s/ Vishal N. Sheth* | Director | |||
| Vishal N. Sheth | ||||
| /s/ Jasjit Singh* | Director | |||
| Jasjit Singh |
| By: | /s/ J. Neil McMurdie | |
| *Attorney-in-Fact |
| * | Executed by J. Neil McMurdie on behalf of those indicated pursuant
to Powers of Attorney filed as an exhibit to this Registration Statement. |
EXHIBIT INDEX
| Item 27 Exhibit No. | Exhibit |
| (k) | Opinion and Consent of Counsel |
| (l) | Consent of Independent Registered Public Accounting Firm |
| (o) | Form of Initial Summary Prospectus |
| (p) | Powers of Attorney |