QUARTERLY STATEMENT FIDELITY & GUARANTY LIFE INSURANCE COMPANY OF NEW YORK

Transcription

1 QUARTERLY STATEMENT OF THE FILITY & GUARANTY LIFE INSURANCE COMPANY OF NEW YORK Of New York in the state of NY to the Insurance Department of the State of For the Period Ended September 30, /13/2014 4:56:16 PM

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4 ASSETS Current Statement Date Net Admitted December 31 Nonadmitted Assets Prior Year Net Assets Assets (Cols. 1-2) Admitted Assets 1. Bonds ,992, ,992, ,211, Stocks: 2.1 Preferred stocks ,529, ,529, ,522, Common stocks Mortgage loans on real estate: 3.1 First liens Other than first liens Real estate: 4.1 Properties occupied by the company (less $...0 encumbrances) Properties held for the production of income (less $...0 encumbrances) Properties held for sale (less $...0 encumbrances) Cash ($...371,584), cash equivalents ($...0) and short-term investments ($...13,050,278) ,421, ,421, ,582, Contract loans (including $...0 premium notes) ,469, ,469, ,505, Derivatives ,809, ,809, ,805, Other invested assets ,114, ,114, ,694, Receivables for securities , , , Securities lending reinvested collateral assets Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines 1 to 11) ,339, ,339, ,324, Title plants less $...0 charged off (for Title insurers only) Investment income due and accrued ,315, ,315, ,588, Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection , ,230...(92,091)...(99,595) 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $...0 earned but unbilled premiums) , , , Accrued retrospective premiums Reinsurance: 16.1 Amounts recoverable from reinsurers Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts , , , Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon , , Net deferred tax asset ,803, ,827, , ,145, Guaranty funds receivable or on deposit Electronic data processing equipment and software , , Furniture and equipment, including health care delivery assets ($...0) Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates Health care ($...0) and other amounts receivable Aggregate write-ins for other than invested assets , , Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 through 25) ,915, ,960, ,955, ,258, From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 26 and 27) ,915, ,960, ,955, ,258,699 TAILS OF WRITE-INS Summary of remaining write-ins for Line 11 from overflow page Totals (Lines 1101 thru 1103 plus 1198) (Line 11 above) Prepaid expenses , , Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above) , , Q02 11/13/2014 4:56:17 PM

5 LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31 Statement Date Prior Year 1. Aggregate reserve for life contracts $...402,116,174 less $...0 included in Line 6.3 (including $...0 Modco Reserve) ,116, ,254, Aggregate reserve for accident and health contracts (including $...0 Modco Reserve) Liability for deposit-type contracts (including $...0 Modco Reserve) ,793, ,136, Contract claims: 4.1 Life , , Accident and health Policyholders' dividends $ and coupons $...0 due and unpaid Provision for policyholders' dividends and coupons payable in following calendar year - estimated amounts: 6.1 Dividends apportioned for payment (including $...0 Modco) , , Dividends not yet apportioned (including $...0 Modco) , , Coupons and similar benefits (including $...0 Modco) Amount provisionally held for deferred dividend policies not included in Line Premiums and annuity considerations for life and accident and health contracts received in advance less $...0 discount; including $...0 accident and health premiums , , Contract liabilities not included elsewhere: 9.1 Surrender values on canceled contracts Provision for experience rating refunds, including the liability of $...0 accident and health experience rating refunds of which $...0 is for medical loss ratio rebate per the Public Health Service Act Other amounts payable on reinsurance, including $...0 assumed and $...0 ceded Interest Maintenance Reserve ,951, ,667, Commissions to agents due or accrued - life and annuity contracts $...96,549, accident and health $...0 and deposit-type contract funds $ , , Commissions and expense allowances payable on reinsurance assumed General expenses due or accrued , , Transfers to Separate Accounts due or accrued (net) (including $...0 accrued for expense allowances recognized in reserves, net of reinsured allowances) Taxes, licenses and fees due or accrued, excluding federal income taxes , , Current federal and foreign income taxes, including $...0 on realized capital gains (losses) , Net deferred tax liability Unearned investment income Amounts withheld or retained by company as agent or trustee , , Amounts held for agents' account, including $...0 agents' credit balances Remittances and items not allocated , , Net adjustment in assets and liabilities due to foreign exchange rates Liability for benefits for employees and agents if not included above Borrowed money $...0 and interest thereon $ Dividends to stockholders declared and unpaid Miscellaneous liabilities: Asset valuation reserve ,453, ,919, Reinsurance in unauthorized and certified ($...0) companies Funds held under reinsurance treaties with unauthorized and certified ($...0) reinsurers , , Payable to parent, subsidiaries and affiliates , , Drafts outstanding Liability for amounts held under uninsured plans Funds held under coinsurance Derivatives Payable for securities ,039, , Payable for securities lending Capital notes $...0 and interest thereon $ Aggregate write-ins for liabilities , ,195, Total liabilities excluding Separate Accounts business (Lines 1 to 25) ,831, ,383, From Separate Accounts statement Total liabilities (Lines 26 and 27) ,831, ,383, Common capital stock , , Preferred capital stock Aggregate write-ins for other than special surplus funds Surplus notes Gross paid in and contributed surplus ,097, ,097, Aggregate write-ins for special surplus funds Unassigned funds (surplus) ,586, ,337, Less treasury stock, at cost: shares common (value included in Line 29 $...0) shares preferred (value included in Line 30 $...0) Surplus (Total Lines ) (including $...0 in Separate Accounts Statement) ,684, ,434, Totals of Lines 29, 30 and ,124, ,874, Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3) ,955, ,258,698 TAILS OF WRITE-INS Unpresented drafts pending escheatment , ,195, Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above) , ,195, Summary of remaining write-ins for Line 31 from overflow page Totals (Lines 3101 thru 3103 plus 3198) (Line 31 above) Summary of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above) Q03 11/13/2014 4:56:17 PM

6 SUMMARY OF OPERATIONS Current Prior Prior Year Ended Year to Date Year to Date December Premiums and annuity considerations for life and accident and health contracts ,422, ,868, ,479, Considerations for supplementary contracts with life contingencies , , , Net investment income ,754, ,506, ,817, Amortization of Interest Maintenance Reserve (IMR) ,853, ,974, ,546, Separate Accounts net gain from operations excluding unrealized gains or losses Commissions and expense allowances on reinsurance ceded , , , Reserve adjustments on reinsurance ceded Miscellaneous Income: 8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts Charges and fees for deposit-type contracts Aggregate write-ins for miscellaneous income Totals (Lines 1 to 8.3) ,185, ,463, ,985, Death benefits ,206, , ,011, Matured endowments (excluding guaranteed annual pure endowments) , , Annuity benefits ,977, ,442, ,917, Disability benefits and benefits under accident and health contracts , , , Coupons, guaranteed annual pure endowments and similar benefits Surrender benefits and withdrawals for life contracts ,375, ,374, ,400, Group conversions Interest and adjustments on contract or deposit-type contract funds ,399, ,551, ,855, Payments on supplementary contracts with life contingencies , , , Increase in aggregate reserves for life and accident and health contracts ,861, ,601, ,958, Totals (Lines 10 to 19) ,149, ,040, ,585, Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only) ,052, ,645, ,905, Commissions and expense allowances on reinsurance assumed General insurance expenses ,654, ,711, ,280, Insurance taxes, licenses and fees, excluding federal income taxes ,539...(43,363)...84, Increase in loading on deferred and uncollected premiums (5,765)...(5,454) 26. Net transfers to or (from) Separate Accounts net of reinsurance Aggregate write-ins for deductions Totals (Lines 20 to 27) ,236, ,348, ,851, Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28) ,949, ,114, ,134, Dividends to policyholders , , , Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30) ,942, ,107, ,123, Federal and foreign income taxes incurred (excluding tax on capital gains) , , , Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32) ,923, ,572, ,273, Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $...0 (excluding taxes of $...777,624 transferred to the IMR) , Net income (Line 33 plus Line 34) ,955, ,572, ,273,492 CAPITAL AND SURPLUS ACCOUNT 36. Capital and surplus, December 31, prior year ,874, ,107, ,107, Net income (Line 35) ,955, ,572, ,273, Change in net unrealized capital gains (losses) less capital gains tax of $ (987,329)...1,694, ,696, Change in net unrealized foreign exchange capital gain (loss) Change in net deferred income tax......(170,391)...(518,534)...299, Change in nonadmitted assets......(14,379)...34,332...(630,662) 42. Change in liability for reinsurance in unauthorized and certified companies Change in reserve on account of change in valuation basis, (increase) or decrease Change in asset valuation reserve......(534,205)...(513,284)...(726,960) 45. Change in treasury stock Surplus (contributed to) withdrawn from Separate Accounts during period Other changes in surplus in Separate Accounts Statement Change in surplus notes Cumulative effect of changes in accounting principles Capital changes: 50.1 Paid in Transferred from surplus (Stock Dividend) Transferred to surplus Surplus adjustment: 51.1 Paid in ,856, ,856, Transferred to capital (Stock Dividend) Transferred from capital Change in surplus as a result of reinsurance Dividends to stockholders Aggregate write-ins for gains and losses in surplus Net change in capital and surplus (Lines 37 through 53) ,249, ,125, ,767, Capital and surplus as of statement date (Lines ) ,124, ,232, ,874,751 TAILS OF WRITE-INS Other Income Summary of remaining write-ins for Line 8.3 from overflow page Totals (Lines thru plus ) (Line 8.3 above) Miscellaneous expenses Policy write-offs Summary of remaining write-ins for Line 27 from overflow page Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above) Summary of remaining write-ins for Line 53 from overflow page Totals (Lines 5301 thru 5303 plus 5398) (Line 53 above) Q04 11/13/2014 4:56:18 PM

7 CASH FROM OPERATIONS CASH FLOW Current Year Prior Year Prior Year Ended to Date To Date December Premiums collected net of reinsurance ,527, ,952, ,542, Net investment income ,295, ,444, ,586, Miscellaneous income , , , Total (Lines 1 through 3) ,903, ,480, ,241, Benefit and loss related payments ,115, ,276, ,121, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write-ins for deductions ,200, ,677, ,625, Dividends paid to policyholders , , , Federal and foreign income taxes paid (recovered) net of $...1,086,012 tax on capital gains (losses) ,445, , , Total (Lines 5 through 9) ,768, ,359, ,555, Net cash from operations (Line 4 minus Line 10) ,135, ,121, ,685,856 CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds ,281, ,537, ,307, Stocks ,000, ,000, Mortgage loans ,856, ,856, Real estate Other invested assets ,266, Net gains or (losses) on cash, cash equivalents and short-term investments Miscellaneous proceeds ,080, ,177, ,033, Total investment proceeds (Lines 12.1 to 12.7) ,629, ,570, ,197, Cost of investments acquired (long-term only): 13.1 Bonds ,910, ,293, ,743, Stocks ,007, ,070, Mortgage loans Real estate Other invested assets , Miscellaneous applications ,629, ,637, ,263, Total investments acquired (Lines 13.1 to 13.6) ,146, ,931, ,078, Net increase or (decrease) in contract loans and premium notes......(36,650)...(190,618)...(233,265) 15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)......(20,480,709)...(13,169,719)...(33,647,188) 16. Cash provided (applied): CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16.1 Surplus notes, capital notes Capital and paid in surplus, less treasury stock Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities......(2,343,238)...(3,321,328)...(4,659,691) 16.5 Dividends to stockholders Other cash provided (applied)......(472,359)...(2,073,695)...(1,637,312) 17. Net cash from financing and miscellaneous sources (Lines 16.1 through 16.4 minus Line 16.5 plus Line 16.6)......(2,815,597)...(5,395,023)...(6,297,003) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17)......(14,160,393)...(8,443,716)...(28,258,335) 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year ,582, ,840, ,840, End of period (Line 18 plus Line 19.1) ,421, ,396, ,582,254 Note: Supplemental disclosures of cash flow information for non-cash transactions: Non-cash from investment activity: Transfer of Procida Loans as Capital Contribution (17,856,250)...(17,856,250) Non-cash from financing and miscellaneous sources activity: Capital contribution from Parent in the form of Mortgage Loans ,856, ,856,250 Q05 11/13/2014 4:56:18 PM

8 EXHIBIT 1 DIRECT PREMIUMS AND POSIT-TYPE CONTRACTS Current Year Prior Year Prior Year To Date To Date Ended December Industrial life Ordinary life insurance ,819, ,935, ,639, Ordinary individual annuities ,418, ,766, ,961, Credit life (group and individual) Group life insurance Group annuities A&H - group A&H - credit (group and individual) A&H - other Aggregate of all other lines of business Subtotal ,238, ,702, ,601, Deposit-type contracts Total ,238, ,702, ,601,579 TAILS OF WRITE-INS Summary of remaining write-ins for Line 10 from overflow page Total (Lines 1001 thru 1003 plus 1098) (Line 10 above) Q06 11/13/2014 4:56:18 PM

9 NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies A. Accounting Practices The financial statements of Fidelity and Guaranty Life Insurance Company of New York ( the Company ) are presented on the basis of accounting practices prescribed or permitted by the New York State Department of Financial Services ( NYDFS ). The NYDFS recognizes only statutory accounting practices prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under New York Insurance Law. The National Association of Insurance Commissioners ( NAIC ) Accounting Practices and Procedures Manual, version effective January 1, 2001, ( NAIC SAP ) has been adopted as a component of prescribed or permitted practices by the State of New York. The Company follows these prescribed practices and does not use other permitted practices and, as such, there is no Risk Based Capital effect. A reconciliation of the Company s net income and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of New York is shown below: NET INCOME State of Domicile 9/30/ /31/2013 (1) Fidelity & Guaranty Life Insurance Company of New York state basis (Page 4, Line 35, Columns 1 & 3) New York $ 3,955,634 $ 1,273,492 State Prescribed Practices that increase/(decrease) (2) NAIC SAP: - - (3) State Permitted Practices that increase/(decrease) NAIC SAP: - - (4) NAIC SAP ( = 4) New York $ 3,955,634 $ 1,273,492 SURPLUS (5) Fidelity & Guaranty Life Insurance Company of New York state basis (Page 3, Line 38, Columns 1 & 2) New York $ 64,124,084 $ 61,874,753 State Prescribed Practices that increase/(decrease) (6) NAIC SAP: - - (7) State Permitted Practices that increase/(decrease) NAIC SAP: - - (8) NAIC SAP ( = 8) New York $ 64,124,084 $ 61,874, Accounting Changes and Corrections of Errors 3. Business Combinations and Goodwill 4. Discontinued Operations 5. Investments D. Loan-Backed and Structured Securities (1) Prepayment assumptions for single class and multi-class mortgage-backed and assetbacked securities were obtained from dealer survey values and are consistent with the current interest rate and economic environment. (2) The Company did not recognize any other-than-temporary impairments during the nine months ended September 30, 2014 related to the intent to sell the security or the Company not having the intent and ability to retain the security until its amortized cost is recovered. Q07

10 NOTES TO THE FINANCIAL STATEMENTS (3) For the nine months ended, September 30, 2014, the Company did not recognize any other-than-temporary impairments ( OTTI ) as the present value of cash flows expected to be collected are less than the amortized cost basis of these securities: (4) The following table presents the unrealized loss aging for the Company s investments in loan-backed and structured securities at September 30, 2014 by length of time the security was in a continuous unrealized loss position. a) The aggregate amount of unrealized losses: 1. Less than 12 Months $ 83, Months or Longer $ 388,773 b) The aggregate related fair value of securities with unrealized losses: 1. Less than 12 Months $ 15,304, Months or Longer $ 15,636,633 (5) If the fair value of a loan-backed or structured security is less than its amortized cost basis at the balance-sheet date, the Company determines whether the following circumstances exist and, if so, recognizes an other-than-temporary impairment loss: If the Company intends to sell the security or does not have the intent and ability to retain the security until its amortized cost is recovered, the security is other-thantemporarily impaired. A realized loss is recognized for the entire difference between the security s amortized cost and its fair value at the balance-sheet date. If the Company does not expect to recover the entire amortized cost from the present value of the security s future cash flows, it cannot assert it has the ability to recover the security s amortized cost even though it has no intent to sell and has the intent and ability to retain. The security is therefore other-than-temporarily impaired. A realized loss is recognized for the non-interest-related decline, which is the difference between the security s amortized cost and the present value of cash flows expected to be collected. E. Re-purchase Agreements and Securities Lending Transactions- None. I. Working Capital Finance Investments- None. No other significant changes. 6. Joint Ventures, Partnerships and Limited Liability Companies 7. Investment Income 8. Derivative Instruments 9. Income Taxes No significant change 10. Information Concerning Parent, Subsidiaries, Affiliates and Related Parties B. Detail of Transactions greater than ½% of admitted assets At September 30, 2014, The Company sold $5,076,175 of debt securities issued by Jefferies Group LLC. ("Jefferies"), a wholly owned subsidiary of Leucadia National Corporation ( Leucadia ). As of September 30, 2014 Leucadia owns greater than 10% of the outstanding common shares of Harbinger Group Inc. ( HGI ). D. Amounts due to or from related parties At September 30, 2014, the Company has various amounts due to or from related parties. The following table presents the amounts outstanding and the respective related party: Q07.1

11 NOTES TO THE FINANCIAL STATEMENTS 11. Debt Amount due (to) from Related Party Relationship to Company $ (159,926) Fidelity & Guaranty Life Business Services, Inc. ( FGLBS ) Affiliate $ (60,500) Fidelity & Guaranty Life Affiliate The terms of the settlement of the current balances require that the amounts be settled within 30 Days. Additionally, at September 30, 2014, the Company had an income tax receivable balance of $154,839 due from Fidelity & Guaranty Life Insurance Company ( FGLIC ). No other significant changes. B. FHLB (Federal Home Loan Bank) Agreements None 12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans Neither the Company, FGLIC nor FGLBS provide for a defined benefit pension plan or other postretirement benefits to its employees. Accordingly, the financial statements of the Company do not reflect any provision for such costs for the period ended September 30, Capital and Surplus, Shareholders' Dividend Restrictions and Quasi-Reorganizations 14. Contingencies 15. Leases 16. Information about Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk 17. Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities A. Transfers of Receivables reported as Sales. - None B. Transfer and Servicing of Financial Assets. - None C. Wash Sales. - None 18. Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans 19. Direct Premium Written/Produced by Managing General Agents/Third Party Administrators 20. Fair Value Measurements A. The Company s measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk, which may include the Company s own credit risk. The Company s estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability ( exit price ) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability ( entry price ). Q07.2

12 NOTES TO THE FINANCIAL STATEMENTS (1) Fair Value Measurements at September 30, 2014: (1) Description (2) (3) (4) (5) (Level 1) (Level 2) (Level 3) Total Asset at fair value: Derivative instruments - assets $ - $ 2,809,694 $ - $ 2,809,694 Total assets at fair value $ - $ 2,809,694 $ - $ 2,809,694 (2) Fair Value Measurements in (Level 3) of the Fair Value Hierarchy No fair value measurements were determined using significant unobservable inputs (Level 3). Level 3 securities trade in less liquid or illiquid markets with limited or no pricing information. The valuation relies on management s judgment concerning the discount rate used in calculating expected cash flows, credit quality, industry sector performance and expected maturity. (3) The Company s policy is to recognize transfers in and transfers out of the fair value hierarchy levels as of the actual date of the event or change in circumstances that caused the transfer. (4) Valuation techniques and inputs used in Fair Value Measurements for Level 2: Derivative Instruments - The fair value of options is based upon valuation pricing models and represents what the Company would expect to receive or pay at the balance sheet date if the Company cancelled the options, entered into offsetting positions, or exercised the options. Fair values for the options are determined externally by an independent actuarial firm using market observable inputs, including interest rates, yield curve volatilities and other factors, and therefore the assets are classified as Level 2. Credit risk related to the counterparty is considered when estimating the fair values of the options. However, the Company is largely protected by collateral arrangements with counterparties. B. Not applicable C. Aggregate Fair Value for all financial instruments at September 30, 2014: D. Not applicable. 21. Other Items H. Offsetting and Netting of Assets and Liabilities None. J. Risk Sharing Provisions of the Affordable Care Act- None. No other significant changes. 22. Subsequent Events 23. Reinsurance 24. Retrospectively Rated Contracts and Contracts Subject to Redetermination Not Practicable Aggregate Admitted (Carrying Type of Financial Instruments Fair Value Asset (Level 1) (Level 2) (Level 3) Value) Bonds $ 488,865,630 $ 467,992,812 $ 402,217 $ 486,471,283 $ 1,992,130 $ - Preferred stocks 22,867,232 20,529,867-22,867, Derivative instruments 2,809,694 2,809,694-2,809, Surplus debentures 4,528,581 4,114,306-4,528, Policy loans 1,532,696 1,469, ,532,696 - Deposit-type contracts-general account: Payout annuities without life contingency 36,502,164 32,635,873-36,502, Dividend accumulations 157, , , Total general account deposit-type contracts $ 36,659,296 $ 32,793,005 $ - $ 36,659,296 $ - $ - Q07.3

13 NOTES TO THE FINANCIAL STATEMENTS 25. Change in Incurred Losses and Loss Adjustment Expenses The Company does not have any accident and health business. 26. Intercompany Pooling Arrangements 27. Structured Settlements Not applicable. 28. Health Care Receivables 29. Participating Policies 30. Premium Deficiency Reserves 31. Reserves for Life Contracts and Annuity Contracts 32. Analysis of Annuity Actuarial Reserves and Deposit-Type Liabilities by Withdrawal Characteristics 33. Premium and Annuity Considerations Deferred and Uncollected 34. Separate Accounts 35. Loss/Claim Adjustment Expenses Q07.4

14 GENERAL INTERROGATORIES PART 1 - COMMON INTERROGATORIES - GENERAL 1.1 Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? Yes [ ] No [ X ] 1.2 If yes, has the report been filed with the domiciliary state? Yes [ ] No [ ] 2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [ X ] 2.2 If yes, date of change: Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [ X ] No [ ] If yes, complete Schedule Y, Parts 1 and 1A. 3.2 Have there been any substantial changes in the organizational chart since the prior quarter end? Yes [ ] No [ X ] 3.3 If the response to 3.2 is yes, provide a brief description of those changes. 4.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ] 4.2 If yes, provide name of entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation NAIC State of Name of Entity Company Code Domicile 5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-in-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? Yes [ ] No [ X ] N/A [ ] If yes, attach an explanation. 6.1 State as of what date the latest financial examination of the reporting entity was made or is being made....12/31/ State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released....12/31/ State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date)....1/2/ By what department or departments? New York State Department of Financial Services 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ ] No [ ] N/A [ X ] 6.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ X ] No [ ] N/A [ ] 7.1 Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ] 7.2 If yes, give full information: 8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ] 8.2 If response to 8.1 is yes, please identify the name of the bank holding company. 8.3 Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [ X ] 8.4 If the response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator] Affiliate Name Location (City, State) FRB OCC FDIC SEC 9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards? Yes [ X ] No [ ] (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules and regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and (e) Accountability for adherence to the code If the response to 9.1 is No, please explain: 9.2 Has the code of ethics for senior managers been amended? Yes [ ] No [ X ] 9.21 If the response to 9.2 is Yes, provide information related to amendment(s). 9.3 Have any provisions of the code of ethics been waived for any of the specified officers? Yes [ ] No [ X ] Q08 11/13/2014 4:56:19 PM

15 9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s). GENERAL INTERROGATORIES PART 1 - COMMON INTERROGATORIES - GENERAL PART 1 - FINANCIAL 10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? Yes [ ] No [ X ] 10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount:... PART 1 - INVESTMENT 11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for use by another person? (Exclude securities under securities lending agreements.) Yes [ ] No [ X ] 11.2 If yes, give full and complete information relating thereto: 12. Amount of real estate and mortgages held in other invested assets in Schedule BA: $ Amount of real estate and mortgages held in short-term investments: $ Does the reporting entity have any investments in parent, subsidiaries and affiliates? Yes [ ] No [ X ] 14.2 If yes, please complete the following: 1 2 Prior Year-End Current Quarter Book/Adjusted Carrying Value Book/Adjusted Carrying Value Bonds... $...0 $ Preferred Stock... $...0 $ Common Stock... $...0 $ Short-Term Investments... $...0 $ Mortgage Loans on Real Estate... $...0 $ All Other... $...0 $ Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines to 14.26)... $...0 $ Total Investment in Parent included in Lines to above... $...0 $ Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes [ X ] No [ ] 15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ X ] No [ ] If no, attach a description with this statement. 16. For the reporting entity's security lending program, state the amount of the following as of current statement date: 16.1 Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2: $ Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2: $ Total payable for securities lending reported on the liability page: $ Excluding items in Schedule E-Part 3-Special Deposits, real estate, mortgage loans and investments held physically in the reporting entity's offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ] 17.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following: 1 2 Name of Custodian(s) Custodian Address JPMorgan Chase Bank, N.A. 4 Chase Metrotech Center, Brooklyn, NY For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation Name(s) Location(s) Complete Explanation(s) 17.3 Have there been any changes, including name changes, in the custodian(s) identified in 17.1 during the current quarter? Yes [ ] No [ X ] 17.4 If yes, give full and complete information relating thereto: Old Custodian New Custodian Date of Change Reason 17.5 Identify all investment advisors, broker/dealers or individuals acting on behalf of broker/dealers that have access to the investment accounts, handle securities and have authority to make investments on behalf of the reporting entity: Central Registration Depository Name(s) Address Western Asset Management Company 620 8th Ave. 50th Floor, NY, New York Payden and Rygel 265 Franklin Street, Boston, MA Q /13/2014 4:56:19 PM

16 PART 1 - INVESTMENT 18.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed? Yes [ X ] No [ ] 18.2 If no, list exceptions: Q /13/2014 4:56:19 PM

17 GENERAL INTERROGATORIES (continued) PART 2 - LIFE & HEALTH 1. Report the statement value of mortgage loans at the end of this reporting period for the following categories: 1.1 Long-term mortgages in good standing Amount 1.11 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages in good standing... $ Long-term mortgages in good standing with restructured terms 1.21 Total mortgages in good standing with restructured terms... $ Long-term mortgage loans upon which interest is overdue more than three months 1.31 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages with interest overdue more than three months... $ Long-term mortgage loans in process of foreclosure 1.41 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages in process of foreclosure... $ Total mortgage loans (Lines ) (Page 2, Column 3, Lines )... $ Long-term mortgages foreclosed, properties transferred to real estate in current quarter 1.61 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages foreclosed and transferred to real estate... $ Operating Percentages: 2.1 A&H loss percent A&H cost containment percent A&H expense percent excluding cost containment expenses Do you act as a custodian for health savings accounts?... Yes [ ] No [ X ] 3.2 If yes, please provide the amount of custodial funds held as of the reporting date... $ Do you act as an administrator for health savings accounts?... Yes [ ] No [ X ] 3.4 If yes, please provide the balance of the funds administered as of the reporting date... $... Q09 11/13/2014 4:56:19 PM

18 SCHEDULE S - CED REINSURANCE Showing All New Reinsurance Treaties - Current Year to Date NAIC Type of Certified Effective Date Company ID Effective Domiciliary Reinsurance Type of Reinsurer Rating of Certified Code Number Date Name of Reinsurer Jurisdiction Ceded Reinsurer (1 through 6) Reinsuer Rating NONE Q10 11/13/2014 4:56:20 PM

19 SCHEDULE T - PREMIUMS AND ANNUITY CONSIRATIONS Current Year to Date - Allocated by States and Territories 1 Direct Business Only Life Contracts Accident and Health Insurance Premiums, Total Active Life Insurance Annuity Including Policy, Mem- Other Columns Deposit-Type States, Etc. Status Premiums Considerations bership and Other Fees Considerations 2 through 5 Contracts 1. Alabama...AL...N Alaska...AK...N Arizona...AZ...N Arkansas...AR...N California...CA...N Colorado...CO...N Connecticut...CT...N Delaware......N District of Columbia...DC...N Florida...FL...N Georgia...GA...N Hawaii...HI...N Idaho...ID...N Illinois...IL...N Indiana...IN...N Iowa...IA...N Kansas...KS...N Kentucky...KY...N Louisiana...LA...N Maine...ME...N Maryland...MD...N Massachusetts...MA...N Michigan...MI...N Minnesota...MN...N Mississippi...MS...N Missouri...MO...N Montana...MT...N Nebraska...NE...N Nevada...NV...N New Hampshire...NH...N New Jersey...NJ...N New Mexico...NM...N New York...NY...L ,853, ,418, ,271, North Carolina...NC...N North Dakota...ND...N Ohio...OH...N Oklahoma...OK...N Oregon...OR...N Pennsylvania...PA...N Rhode Island...RI...N South Carolina...SC...N South Dakota...SD...N Tennessee...TN...N Texas...TX...N Utah...UT...N Vermont...VT...N Virginia...VA...N Washington...WA...N West Virginia...WV...N Wisconsin...WI...N Wyoming...WY...N American Samoa...AS...N Guam...GU...N Puerto Rico...PR...N US Virgin Islands...VI...N Northern Mariana Islands...MP...N Canada...CAN...N Aggregate Other Alien...OT...XXX Subtotal... (a) ,853, ,418, ,271, Reporting entity contributions for employee benefit plans......xxx Dividends or refunds applied to purchase paid-up additions and annuities......xxx , , Dividends or refunds applied to shorten endowment or premium paying period......xxx Premium or annuity considerations waived under disability or other contract provisions......xxx , , Aggregate other amounts not allocable by State......XXX Totals (Direct Business)......XXX ,858, ,418, ,277, Plus Reinsurance Assumed......XXX Totals (All Business)......XXX ,858, ,418, ,277, Less Reinsurance Ceded......XXX , , Totals (All Business) less Reinsurance Ceded......XXX ,035, ,418, ,454, TAILS OF WRITE-INS XXX XXX XXX Summary of remaining write-ins for line 58 from overflow page......xxx Total (Lines thru plus 58998) (Line 58 above)......xxx XXX XXX XXX Summary of remaining write-ins for line 94 from overflow page......xxx Total (Lines 9401 thru 9403 plus 9498) (Line 94 above)......xxx (L) - Licensed or Chartered - Licensed Insurance Carrier or Domicilied RRG; (R) - Registered - Non-domiciled RRGs; (Q) - Qualified - Qualified or Accredited Reinsurer; (E) - Eligible - Reporting Entities eligible or approved to write Surplus Lines in the state; (N) - None of the above - Not allowed to write business in the state. (a) Insert the number of L responses except for Canada and Other Alien. Q11 11/13/2014 4:56:20 PM

20 SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 ORGANIZATIONAL CHART SECTION I DOWNSTREAM AFFILIATES OF HARBINGER GROUP INC. 1 Entity Name* FEIN DOMICILE NAIC Q12 Harbinger Group Inc HGI Energy Holdings, LLC Compass Production GP, LLC Compass Production Partners, LP Compass Energy Operating, LLC Compass Gathering., LLC FS Holdco II Ltd Front Street Re (Delaware) Ltd. Front Street Re Ltd. Bermuda Front Street Re (Cayman) Ltd. Cayman Islands PI Data Holdings, LLC Fidelity & Guaranty Life Fidelity & Guaranty Life Holdings, Inc Fidelity & Guaranty Life Business Services, Inc Fidelity & Guaranty Life Insurance Company IA Fidelity & Guaranty Life Insurance Company of New York NY Fidelity & Guaranty Life Insurance Agency, Inc MD Fidelity & Guaranty Life Assignment, LLC MD Fidelity & Guaranty Life Brokerage, Inc MD Raven Reinsurance Company VT HGI Asset Management Holdings, LLC HGI Real Estate, LLC Five Island Asset Management, LLC CorAmerica Capital, LLC FIAM Capital Management LLC Energy & Infrastructure Capital, LLC Salus Capital Partners, LLC Salus Capital Partners II, LLC Salus Capital Canada, Ltd. Canada HGI Funding, LLC HC2 Holdings, Inc HGI Global Holdings, LLC FOHG Holdings, LLC New FOH, LLC Zaldy NYC, LLC Zap.Com Corporation NV Spectrum Brands Holdings, Inc SB/RH Holdings, LLC Spectrum Brands, Inc