ANNUAL STATEMENT FOR THE YEAR 2016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY ASSETS

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2 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY ASSETS 1 Assets Current Year Nonadmitted Assets Net Admitted Assets (Cols. 1 - ) Prior Year 4 Net Admitted Assets 1. Bonds (Schedule D) 70,84,606 70,84,606 65,55,65. Stocks (Schedule D):.1 Preferred stocks 8,671,410 8,671,410 9,164,586. Common stocks,087,100,087,100,060,600. Mortgage loans on real estate (Schedule B):.1 First liens 16,67,185 16,67,185 1,778,777. Other than first liens 4. Real estate (Schedule A): 4.1 Properties occupied by the company (less $ encumbrances) 8,09,760 8,09,760 6,490,0 4. Properties held for the production of income (less $ encumbrances) 4. Properties held for sale (less $ encumbrances) 5. Cash ($ 9,599,889, Schedule E - Part 1), cash equivalents ($, Schedule E - Part ) and short-term investments ($ 7,75, Schedule DA) 9,607,64 9,607,64,541, Contract loans (including $ premium notes) 1,450,169 6,16 1,86,85 0,748,94 7. Derivatives (Schedule DB) 8. Other invested assets (Schedule BA) 8,40,99 8,40,99 8,84,85 9. Receivables for securities 10. Securities lending reinvested collateral assets (Schedule DL) 11. Aggregate write-ins for invested assets 1. Subtotals, cash and invested assets (Lines 1 to 11) 778,06,865 6,16 778,4, ,44, Title plants less $ charged off (for Title insurers only) 14. Investment income due and accrued 9,74,11 9,74,11 9,67, Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 1,154,181 1,154, , Deferred premiums and agents' balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums) 44,115,79 44,115,79 41,5, Accrued retrospective premiums ($ ) and 16. Reinsurance: contracts subject to redetermination ($ ) 16.1 Amounts recoverable from reinsurers 76,07 76, Funds held by or deposited with reinsured companies 16. Other amounts receivable under reinsurance contracts 6,108 6,108 5, Amounts receivable relating to uninsured plans 18.1 Current federal and foreign income tax recoverable and interest thereon 1,08,66 1,08,66 946, Net deferred tax asset 69,4,755 56,9,89 1,498,96 10,8, Guaranty funds receivable or on deposit,999,97,999,97,75, Electronic data processing equipment and software 5,894,49 5,894,49 1. Furniture and equipment, including health care delivery assets ($ ) 50,77 50,77. Net adjustment in assets and liabilities due to foreign exchange rates. Receivables from parent, subsidiaries and affiliates,75,98,75,98,650, Health care ($ ) and other amounts receivable,46,48,41,680 0,758 1,9 5. Aggregate write-ins for other than invested assets 45,500 45, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 1 to 5) 940,57,196 85,816, ,71, ,09,94 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 8. Total (Lines 6 and 7) 940,57,196 85,816, ,71, ,09, DETAILS OF WRITE-INS Summary of remaining write-ins for Line 11 from overflow page Totals (Lines 1101 thru 110 plus 1198)(Line 11 above) 501. Transferable state tax credits 45,500 45, Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 501 thru 50 plus 598)(Line 5 above) 45,500 45,500

3 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 Prior Year Current Year 1. Aggregate reserve for life contracts $ 570,00,867 (Exh. 5, Line ) less $ included in Line 6. (including $ Modco Reserve) 570,00, ,706,06. Aggregate reserve for accident and health contracts (including $ Modco Reserve) 17,68,74 17,441,9. Liability for deposit-type contracts (Exhibit 7, Line 14, Col. 1) (including $ Modco Reserve) 50,05,18 50,070, Contract claims: 4.1 Life (Exhibit 8, Part 1, Line 4.4, Col. 1 less sum of Cols. 9, 10 and 11) 1,51,81 5,057,48 4. Accident and health (Exhibit 8, Part 1, Line 4.4, sum of Cols. 9, 10 and 11) 9,999,747 8,708, Policyholders dividends $ and coupons $ due and unpaid (Exhibit 4, Line 10) 6. Provision for policyholders dividends and coupons payable in following calendar year - estimated amounts: 6.1 Dividends apportioned for payment (including $ Modco) 6. Dividends not yet apportioned (including $ Modco) 6. Coupons and similar benefits (including $ Modco) 7. Amount provisionally held for deferred dividend policies not included in Line 6 8. Premiums and annuity considerations for life and accident and health contracts received in advance less $ discount; including $,1,00 accident and health premiums (Exhibit 1, Part 1, Col. 1, sum of lines 4 and 14) 4,068,705 4,175,87 9. Contract liabilities not included elsewhere: 9.1 Surrender values on canceled contracts 9. Provision for experience rating refunds, including the liability of $ accident and health experience rating refunds of which $ is for medical loss ratio rebate per the Public Health Service Act 9. Other amounts payable on reinsurance, including $ 196,44 assumed and $ 5,69,59 ceded 5,85,801,06, Interest maintenance reserve (IMR, Line 6) 0,944,075,6, Commissions to agents due or accrued-life and annuity contracts $ accident and health $ 1,605,49 and deposit-type contract funds $ 1,605,49 1,509, Commissions and expense allowances payable on reinsurance assumed 1. General expenses due or accrued (Exhibit, Line 1, Col. 6),66,74,594, Transfers to Separate Accounts due or accrued (net) (including $ accrued for expense allowances recognized in reserves, net of reinsured allowances) 14. Taxes, licenses and fees due or accrued, excluding federal income taxes (Exhibit, Line 9, Col. 5) 7,51,718 6,55, Current federal and foreign income taxes, including $ on realized capital gains (losses) 15. Net deferred tax liability 16. Unearned investment income 17. Amounts withheld or retained by company as agent or trustee 67,645 6,1 18. Amounts held for agents' account, including $ agents' credit balances 19. Remittances and items not allocated 7,00,685 5,106,18 0. Net adjustment in assets and liabilities due to foreign exchange rates 1. Liability for benefits for employees and agents if not included above. Borrowed money $ and interest thereon $. Dividends to stockholders declared and unpaid 4. Miscellaneous liabilities: 4.01 Asset valuation reserve (AVR, Line 16, Col. 7) 6,94,7 5,645, Reinsurance in unauthorized and certified ($ ) companies 4.0 Funds held under reinsurance treaties with unauthorized and certified ($ ) reinsurers 4.04 Payable to parent, subsidiaries and affiliates 9,89,04 9,151, Drafts outstanding 4.06 Liability for amounts held under uninsured plans 4.07 Funds held under coinsurance 4,104,674 4,045, Derivatives 4.09 Payable for securities 4.10 Payable for securities lending 4.11 Capital notes $ and interest thereon $ 5. Aggregate write-ins for liabilities 0,055,77 15,60, Total liabilities excluding Separate Accounts business (Lines 1 to 5) 758,896,015 76,769, From Separate Accounts Statement 8. Total liabilities (Lines 6 and 7) 758,896,015 76,769, Common capital stock,500,000,500, Preferred capital stock 1. Aggregate write-ins for other than special surplus funds. Surplus notes 160,000, ,000,000. Gross paid in and contributed surplus (Page, Line, Col. plus Page 4, Line 51.1, Col. 1) 9,77,065 14,77, Aggregate write-ins for special surplus funds 5. Unassigned funds (surplus) (96,051,975) (97,616,96) 6. Less treasury stock, at cost: 6.1 shares common (value included in Line 9 $ ) 6. shares preferred (value included in Line 0 $ ) 7. Surplus (Total Lines ) (including $ in Separate Accounts Statement) 9,5,090 76,760,19 8. Totals of Lines 9, 0 and 7 (Page 4, Line 55) 95,85,090 79,60,19 9. Totals of Lines 8 and 8 (Page, Line 8, Col. ) 854,71, ,09,94 DETAILS OF WRITE-INS 501. Unclaimed funds 0,055,77 15,60, Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 501 thru 50 plus 598)(Line 5 above) 0,055,77 15,60, Summary of remaining write-ins for Line 1 from overflow page 199. Totals (Lines 101 thru 10 plus 198)(Line 1 above) Summary of remaining write-ins for Line 4 from overflow page 499. Totals (Lines 401 thru 40 plus 498)(Line 4 above)

4 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY SUMMARY OF OPERATIONS 1 Current Year Prior Year 1. Premiums and annuity considerations for life and accident and health contracts (Exhibit 1, Part 1, Line 0.4, Col. 1, less Col. 11) 5,45,499 0,7,89. Considerations for supplementary contracts with life contingencies. Net investment income (Exhibit of Net Investment Income, Line 17) 4,6,15 8,76, Amortization of Interest Maintenance Reserve (IMR, Line 5) 1,719,46 1,667,58 5. Separate Accounts net gain from operations excluding unrealized gains or losses 6. Commissions and expense allowances on reinsurance ceded (Exhibit 1, Part, Line 6.1, Col. 1) 9,755,14 94,676,6 7. Reserve adjustments on reinsurance ceded 8. Miscellaneous Income: 8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts 8. Charges and fees for deposit-type contracts 8. Aggregate write-ins for miscellaneous income 11,045 6,94 9. Total (Lines 1 to 8.) 48,681, ,497, Death benefits 141,06,50 16,65, Matured endowments (excluding guaranteed annual pure endowments) 1,76,090 1,79,9 1. Annuity benefits (Exhibit 8, Part, Line 6.4, Cols ) 5,445,75 5,8, Disability benefits and benefits under accident and health contracts 65,77,956 60,544, Coupons, guaranteed annual pure endowments and similar benefits 15. Surrender benefits and withdrawals for life contracts 8,566,647 7,74, Group conversions 17. Interest and adjustments on contract or deposit-type contract funds 9,47 919,0 18. Payments on supplementary contracts with life contingencies 19. Increase in aggregate reserves for life and accident and health contracts 1,566,6 9,79,8 0. Totals (Lines 10 to 19) 7,058,51,1,97 1. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct business only) (Exhibit 1, Part, Line 1, Col. 1) 51,887,858 49,999,55. Commissions and expense allowances on reinsurance assumed (Exhibit 1, Part, Line 6., Col. 1) 1,09,87 1,507,67. General insurance expenses (Exhibit, Line 10, Cols. 1,, and 4) 188,4,00 17,15,85 4. Insurance taxes, licenses and fees, excluding federal income taxes (Exhibit, Line 7, Cols ) 1,001,797 19,454,74 5. Increase in loading on deferred and uncollected premiums,69,80 5,094,00 6. Net transfers to or (from) Separate Accounts net of reinsurance 7. Aggregate write-ins for deductions 8. Totals (Lines 0 to 7) 50,9, ,685,01 9. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 8) (0,61,714) (15,187,485) 0. Dividends to policyholders 1. Net gain from operations after dividends to policyholders and before federal income taxes (Line 9 minus Line 0) (0,61,714) (15,187,485). Federal and foreign income taxes incurred (excluding tax on capital gains) (19,468,7),19,80. Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 1 minus Line ) (1,144,487) (18,80,88) 4. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $ (,948) (excluding taxes of $ 410,9 transferred to the IMR) (75,069) (440,99) 5. Net income (Line plus Line 4) (1,896,556) (18,81,17) CAPITAL AND SURPLUS ACCOUNT 6. Capital and surplus, December 1, prior year (Page, Line 8, Col. ) 79,60,19 7,55,74 7. Net income (Line 5) (1,896,556) (18,81,17) 8. Change in net unrealized capital gains (losses) less capital gains tax of $ 190,7 5,6 (66,85) 9. Change in net unrealized foreign exchange capital gain (loss) 40. Change in net deferred income tax (11,645,566) 9,08, Change in nonadmitted assets 15,40,608 (7,59,847) 4. Change in liability for reinsurance in unauthorized and certified companies 4. Change in reserve on account of change in valuation basis, (increase) or decrease 44. Change in asset valuation reserve (648,898) (71,654) 45. Change in treasury stock (Page, Lines 6.1 and 6., Col. minus Col. 1) 46. Surplus (contributed to) withdrawn from Separate Accounts during period 47. Other changes in surplus in Separate Accounts Statement 48. Change in surplus notes 49. Cumulative effect of changes in accounting principles 50. Capital changes: 50.1 Paid in 50. Transferred from surplus (Stock Dividend) 50. Transferred to surplus 51. Surplus adjustment: 51.1 Paid in 15,000,000 4,500, Transferred to capital (Stock Dividend) 51. Transferred from capital 51.4 Change in surplus as a result of reinsurance 5. Dividends to stockholders 5. Aggregate write-ins for gains and losses in surplus (789,61) 54. Net change in capital and surplus for the year (Lines 7 through 5) 16,564,951 6,004, Capital and surplus, December 1, current year (Lines ) (Page, Line 8) 95,85,090 79,60,19 DETAILS OF WRITE-INS Gain from utilization of transferable state tax credits 10,61 6, Administration fee Fees from distribution of life insurance products Summary of remaining write-ins for Line 8. from overflow page Totals (Lines thru 08.0 plus 08.98)(Line 8. above) 11,045 6, Summary of remaining write-ins for Line 7 from overflow page 799. Totals (Lines 701 thru 70 plus 798)(Line 7 above) 501. Adjustment to prior year s accrued general expenses, net of tax (789,61) Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 501 thru 50 plus 598)(Line 5 above) (789,61) 4

5 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY CASH FLOW 1 Current Year Prior Year Cash from Operations 1. Premiums collected net of reinsurance 45,904,47,94,717. Net investment income,45,401 8,546,818. Miscellaneous income 9,875,699 94,741, Total (Lines 1 through ) 47,,57 445,68, Benefit and loss related payments,17,681 1,57, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts 7. Commissions, expenses paid and aggregate write-ins for deductions 60,56,99 4,18,66 8. Dividends paid to policyholders 9. Federal and foreign income taxes paid (recovered) net of $ 77,44 tax on capital gains (losses) (18,955,100),841, Total (Lines 5 through 9) 46,781, ,7, Net cash from operations (Line 4 minus Line 10) 9,450,646 (14,050,55) Cash from Investments 1. Proceeds from investments sold, matured or repaid: 1.1 Bonds 77,709,76 71,444,54 1. Stocks 1. Mortgage loans 5,105,59 5,645, Real estate 1.5 Other invested assets 00,4 564, Net gains or (losses) on cash, cash equivalents and short-term investments 1.7 Miscellaneous proceeds 1.8 Total investment proceeds (Lines 1.1 to 1.7) 8,115,0 77,654,51 1. Cost of investments acquired (long-term only): 1.1 Bonds 15,784,94 1,811, Stocks 6,500,060, Mortgage loans 1.4 Real estate,074,1 88, Other invested assets 4,81 664,8 1.6 Miscellaneous applications 8, Total investments acquired (Lines 1.1 to 1.6) 17,98,69 16,458, Net increase (decrease) in contract loans and premium notes 64,879 67,8 15. Net cash from investments (Line 1.8 minus Line 1.7 minus Line 14) (45,448,045) (59,478,045) Cash from Financing and Miscellaneous Sources 16. Cash provided (applied): 16.1 Surplus notes, capital notes 16. Capital and paid in surplus, less treasury stock 15,000,000 4,500, Borrowed funds 16.4 Net deposits on deposit-type contracts and other insurance liabilities (18,5) 50,070, Dividends to stockholders 16.6 Other cash provided (applied) 7,08,478 5,95, Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6),06,946 79,865,78 RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) (1,9,45) 6,7, Cash, cash equivalents and short-term investments: 19.1 Beginning of year,541,095 17,0, End of year (Line 18 plus Line 19.1) 9,607,64,541,095 Note: Supplemental disclosures of cash flow information for non-cash transactions: Exchanges and transfers of invested assets 1,850,467 5,15, Capitalized interest and payment in kind dividends 95,87 19, Impairment of affiliated short-term investment reported as miscellaneous applications 8,79 5

6 6 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY ANALYSIS OF OPERATIONS BY LINES OF BUSINESS 1 Ordinary 6 Group Accident and Health Aggregate of All Total Industrial Life Life Insurance Individual Annuities Supplementary Contracts Credit Life (Group and Individual) Life Insurance (a) Annuities Group Credit (Group and Individual) Other Other Lines of Business 1. Premiums and annuity considerations for life and accident and health contracts 5,45,499 1, ,111,6 107,67,710 59,566 90,591,900. Considerations for supplementary contracts with life contingencies. Net investment income 4,6, ,75 16,84,518 4,897,555 10,841, ,567 40,740 5,4,978 (4,477,44) 4. Amortization of Interest Maintenance Reserve (IMR) 1,719,46 6,68 740,066 15,0 476,60 8,44 1,791 0,5 5. Separate Accounts net gain from operations excluding unrealized gains or losses 6. Commissions and expense allowances on reinsurance ceded 9,755,14 7,041 58,510 5,177 9,664, Reserve adjustments on reinsurance ceded 8. Miscellaneous Income: 8.1 Fees associated with income from investment management, administration and contract guarantees from Separate Accounts 8. Charges and fees for deposit-type contracts 8. Aggregate write-ins for miscellaneous income 11,045 6,01 0,57 74, Totals (Lines 1 to 8.) 48,681, , ,78,88 5,171,68 118,711, ,991 0, ,805,67 (4,477,44) 10. Death benefits 141,06,50 411,691 81,775,881 58,848, Matured endowments (excluding guaranteed annual pure endowments) 1,76,090 1,54,756 01,4 1. Annuity benefits 5,445,75,69,897 1,805, Disability benefits and benefits under accident and health contracts 65,77,956 14,47 65,69, Coupons, guaranteed annual pure endowments and similar benefits 15. Surrender benefits and withdrawals for life contracts 8,566,647,74 4,954,799,608, Group conversions 17. Interest and adjustments on contract or deposit-type contract funds 9,47, ,77 77, , Payments on supplementary contracts with life contingencies 19. Increase in aggregate reserves for life and accident and health contracts 1,566,6 (178,771) 8,49,89 (989,716) 6,98,005 (97,554) (66,560) 07,99 0. Totals (Lines 10 to 19) 7,058,51 6,66 96,990,8,0,95 69,1,45 1,408,16 67,687 65,990, Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only) 51,887,858 15,895 51,671,96. Commissions and expense allowances on reinsurance assumed 1,09,87 71,970 9,14, General insurance expenses 188,4,00 55,87 70,470, ,995 49,096,67 6,19 47,899 66,74,140,07,95 4. Insurance taxes, licenses and fees, excluding federal income taxes 1,001,798 5,548,69,055 4,18,861 1,786 11,65,77 5. Increase in loading on deferred and uncollected premiums,69,80 (84),406,071 88,60 6. Net transfers to or (from) Separate Accounts net of reinsurance 7. Aggregate write-ins for deductions 8. Totals (Lines 0 to 7) 50,9,891 66, ,565,6,4,00 1,701,166 1,44,455 11,08 195,0,54,07,95 9. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 8) (0,61,714) 90,84 (5,86,80) 1,79,64 (,989,689) (759,464) 181,014 (5,498,087) (6,550,97) 0. Dividends to policyholders 1. Net gain from operations after dividends to policyholders and before federal income taxes (Line 9 minus Line 0) (0,61,714) 90,84 (5,86,80) 1,79,64 (,989,689) (759,464) 181,014 (5,498,087) (6,550,97). Federal income taxes incurred (excluding tax on capital gains) (19,468,7) 0,591 (1,96,41) 585,847 (1,4,79) (55,800) 60,969 4,64,106 (1,6,76). Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 1 minus Line ) (1,144,487) 60, (,86,959) 1,15,518 (,645,895) (50,664) 10,046 (10,141,194) 14,676,49 DETAILS OF WRITE-INS Gain from utilization of transferable state tax credits 10,61 5,85 0,57 74, Administration fee Fees from distribution of life insurance products Summary of remaining write-ins for Line 8. from overflow page Totals (Lines thru 08.0 plus 08.98) (Line 8. above) 11,045 6,01 0,57 74, Summary of remaining write-ins for Line 7 from overflow page 799. Totals (Lines 701 thru 70 plus 798) (Line 7 above) (a) Includes the following amounts for FEGLI/SGLI: Line 1, Line 10, Line 16, Line, Line 4

7 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY ANALYSIS OF INCREASE IN RESERVES DURING THE YEAR 1 Ordinary 6 Group Total Industrial Life Life Insurance Individual Annuities Supplementary Contracts Credit Life (Group and Individual) Life Insurance 8 Annuities Involving Life or Disability Contingencies (Reserves) (Net of Reinsurance Ceded) 1. Reserve December 1, prior year 556,706,08 11,499,59 98,098,54 4,908,81 191,76,50 1,47,45. Tabular net premiums or considerations 10,85,161 71,018 56,00,190 46,11,95. Present value of disability claims incurred XXX 4. Tabular interest 7,041,745 40,71 1,655,015,90,465 9,175, , Tabular less actual reserve released 1,548,01 (1,887) 608,48 (1,689) 94,59 6. Increase in reserve on account of change in valuation basis 7 7. Other increases (net) 8. Totals (Lines 1 to 7) 687,681,019 11,97,1 67,951,57 46,446,994 47,050,416 14,58, Tabular cost 59,511,47 04,844 8,56,71 XXX 0,64, Reserves released by death 40,75,488 7,581 6,09,87 XXX XXX 14,41,080 XXX 11. Reserves released by other terminations (net) 11,967,479 75,086 6,758, ,770,8,895 41,71 1. Annuity, supplementary contract and disability payments involving life contingencies 5,445,75,69,897 1,805, Net transfers to or (from) Separate Accounts 14. Total Deductions (Lines 9 to 1) 117,650,157 65,511 61,60,555 4,57,667 48,889,855,19, Reserve December 1, current year 570,00,86 11,0,80 06,591,017 41,919,7 198,160,561 1,09,17

8 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT OF NET INVESTMENT INCOME 1 Collected During Year Earned During Year 1. U.S. Government bonds (a) 0, , Bonds exempt from U.S. tax (a) 1. Other bonds (unaffiliated) (a) 6,849,678 7,08, Bonds of affiliates (a).1 Preferred stocks (unaffiliated) (b) 55, , Preferred stocks of affiliates (b). Common stocks (unaffiliated) 95,776 95,776.1 Common stocks of affiliates. Mortgage loans (c) 1,8,81 1,95,79 4. Real estate (d) 1,879,9 1,879,9 5 Contract loans 1,65,960 1,655,80 6 Cash, cash equivalents and short-term investments (e) 91,66 91,661 7 Derivative instruments (f) 8. Other invested assets 84,096 84, Aggregate write-ins for investment income 6,70 6, Total gross investment income 4,461,55 4,86, Investment expenses (g) 87, Investment taxes, licenses and fees, excluding federal income taxes (g) 50,09 1. Interest expense (h) 7,591, Depreciation on real estate and other invested assets (i) 54, Aggregate write-ins for deductions from investment income 16. Total deductions (Lines 11 through 15) 9,0, Net investment income (Line 10 minus Line 16) 4,6,151 DETAILS OF WRITE-INS Miscellaneous investment income 6,70 6, Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 0901 thru 090 plus 0998) (Line 9, above) 6,70 6, Summary of remaining write-ins for Line 15 from overflow page Totals (Lines 1501 thru 150 plus 1598) (Line 15, above) (a) Includes $ 1,847,71 accrual of discount less $ 478,899 amortization of premium and less $ 66,08 paid for accrued interest on purchases. (b) Includes $ accrual of discount less $ amortization of premium and less $ paid for accrued dividends on purchases. (c) Includes $ accrual of discount less $ amortization of premium and less $ paid for accrued interest on purchases. (d) Includes $ 96,100 for company s occupancy of its own buildings; and excludes $ interest on encumbrances. (e) Includes $ 74,406 accrual of discount less $ amortization of premium and less $ paid for accrued interest on purchases. (f) Includes $ accrual of discount less $ amortization of premium. (g) Includes $ investment expenses and $ investment taxes, licenses and fees, excluding federal income taxes, attributable to segregated and Separate Accounts. (h) Includes $ 7,87,745 interest on surplus notes and $ interest on capital notes. (i) Includes $ 54,94 depreciation on real estate and $ depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Realized Gain (Loss) On Sales or Maturity Other Realized Adjustments Total Realized Capital Gain (Loss) (Columns 1 + ) Change in Unrealized Capital Gain (Loss) 1. U.S. Government bonds 1.1 Bonds exempt from U.S. tax 1. Other bonds (unaffiliated) 77,14 (5,000) 50,14 81,80 1. Bonds of affiliates.1 Preferred stocks (unaffiliated) (55,149) (55,149) (5,04).11 Preferred stocks of affiliates. Common stocks (unaffiliated).1 Common stocks of affiliates. Mortgage loans 4. Real estate 5. Contract loans 6. Cash, cash equivalents and short-term investments 7. Derivative instruments 8. Other invested assets,1,1 497,17 9. Aggregate write-ins for capital gains (losses) 10. Total capital gains (losses) 740,74 (788,149) (47,875) 54,65 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 0901 thru 090 plus 0998) (Line 9, above) Change in Unrealized Foreign Exchange Capital Gain (Loss) 8

9 9 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT - 1 PART 1 - PREMIUMS AND ANNUITY CONSIDERATIONS FOR LIFE AND ACCIDENT AND HEALTH CONTRACTS 1 Ordinary 5 Group Accident and Health Aggregate of All Total Industrial Life Life Insurance Individual Annuities Credit Life (Group and Individual) Life Insurance Annuities Group Credit (Group and Individual) Other Other Lines of Business FIRST YEAR (other than single) 1. Uncollected 945, ,597 49, Deferred and accrued,7,94 15,757,88 7,580,56. Deferred, accrued and uncollected:.1 Direct 4,8,48 16,5,985 7,99, Reinsurance assumed. Reinsurance ceded Net (Line 1 + Line ) 4,8,071 16,5,985 7,99, Advance 46,415 14,199 79,708 14, Line.4 - Line 4,846,656 16,10,786 7,850,75 (14,406) 6. Collected during year: 6.1 Direct 15,6,564 4,59, 16,984,94 74,118, Reinsurance assumed 6. Reinsurance ceded 59,78,674 59,78, Net 66,08,890 4,59, 16,984,94 14,840,74 7. Line 5 + Line ,90,546 50,470,108 4,84,569 14,65, Prior year (uncollected + deferred and accrued - advance) 4,0,80 16,018,958 8,559,814 (47,95) 9. First year premiums and considerations: 9.1 Direct 15,01,587 4,451,150 16,74,755 74,86,68 9. Reinsurance assumed 9. Reinsurance ceded 59,41,861 59,41, Net (Line 7 - Line 8) 65,599,76 4,451,150 16,74,755 14,87,81 SINGLE 10. Single premiums and considerations: 10.1 Direct 10. Reinsurance assumed 10. Reinsurance ceded 10.4 Net RENEWAL 11. Uncollected,69,8,846 1,10,717 1,04,4 1,976 18,85 1. Deferred and accrued 91,018,145 51,667,60 9,50, Deferred, accrued and uncollected: 1.1 Direct 9,9,66 5,9,755 40,84, ,8 1. Reinsurance assumed 60,11,846 54,59 1,69 1. Reinsurance ceded 1,50 1, Net (Line 11 + Line 1) 9,87,967,846 5,978,47 40,84,946 1,976 18, Advance,6,90 5,4 9,1 756,04 1,6 1,905, Line Line 14 89,755,677 (1,577) 5,045,017 9,68,90 (10,61) (1,886,05) 16. Collected during year: 16.1 Direct 548,,1 11,016,50 89,556,067 49,175 45,710, Reinsurance assumed 1,791,710 14,11 1,99,675 09,60 58,0 16. Reinsurance ceded 70,0,404 6,04 1,4 70,019, Net 79,80,57 14,11 114,154,16 89,54,644 58,796 75,748,8 17. Line 15 + Line ,576,14 10,55 166,199,179 19,16,548 48,45 7,86, Prior year (uncollected + deferred and accrued - advance) 8,7,441 (19,55) 46,59,094 8,070,59 (11,11) (1,855,56) 19. Renewal premiums and considerations: 19.1 Direct 555,196, ,59,86 91,114,89 49,5 45,49, Reinsurance assumed 1,77,991 1,087 1,8,0 (11) 10,1 58,8 19. Reinsurance ceded 70,117,18 6,04 1,4 69,8, Net (Line 17 - Line 18) 86,85,77 1, ,660,085 91,09,955 59,566 75,718,079 TOTAL 0. Total premiums and annuity considerations: 0.1 Direct 680,09,551 15,990, ,89,14 49,5 419,780, Reinsurance assumed 1,77,991 1,087 1,8,0 (11) 10,1 58,8 0. Reinsurance ceded 9,50,044 6,04 1,4 9,46, Net (Lines ) 5,45,499 1, ,111,6 107,67,710 59,566 90,591,900

10 10 DIVIDENDS AND COUPONS APPLIED (included in Part 1) 1. To pay renewal premiums. All other REINSURANCE COMMISSIONS AND EXPENSE ALLOWANCES INCURRED. First year (other than single): ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT - 1 PART - DIVIDENDS AND COUPONS APPLIED, REINSURANCE COMMISSIONS AND EXPENSE ALLOWANCES AND COMMISSIONS INCURRED (Direct Business Only) 1 Ordinary 5 Group Accident and Health Total Industrial Life Life Insurance Individual Annuities Credit Life (Group and Individual) Life Insurance Annuities Group Credit (Group and Individual).1 Reinsurance ceded 59,78,674 59,78,674. Reinsurance assumed. Net ceded less assumed 59,78,674 59,78, Single: 4.1 Reinsurance ceded 4. Reinsurance assumed 4. Net ceded less assumed 5. Renewal: 5.1 Reinsurance ceded 4,476,459 7,041 58,510 5,177 4,85,7 5. Reinsurance assumed 1,09,87 71,970 9,14, Net ceded less assumed,166,587 (71,970) (906,7) 58,510 5,177 (,711) 4,84, Totals: 6.1 Reinsurance ceded (Page 6, Line 6) 9,755,14 7,041 58,510 5,177 9,664, Reinsurance assumed (Page 6, Line ) 1,09,87 71,970 9,14, Net ceded less assumed 9,445,6 (71,970) (906,7) 58,510 5,177 (,711) 9,66,59 COMMISSIONS INCURRED (direct business only) 7. First year (other than single) 5,056, ,754 4,98,86 8. Single 9. Renewal 6,81,718 98,141 6,7, Deposit-type contract funds 1. Totals (to agree with Page 6, Line 1) 51,887,858 15,895 51,671,96 Other Aggregate of All Other Lines of Business

11 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT - GENERAL EXPENSES Insurance Accident and Health 4 Life Cost Containment All Other All Other Lines of Business Investment Total 1. Rent,654,800 6,408,46 9,06,6. Salaries and wages 5,948,114 17,,10 56,98 4,7,54.11 Contributions for benefit plans for employees,0,69 4,,98 6,870 7,6,57.1 Contributions for benefit plans for agents 1,7,4 1,7,4.1 Payments to employees under non-funded benefit plans. Payments to agents under non-funded benefit plans,767,997,767,997.1 Other employee welfare 6,45 89, ,166,19. Other agent welfare 194,50 194, Legal fees and expenses 57,0 19,640 10,778 87, Medical examination fees 84,16 1,11,56 1,96, Inspection report fees 4.4 Fees of public accountants and consulting actuaries 86,87 84,70 671, Expense of investigation and settlement of policy claims 17,45 758,6 90, Traveling expenses 8,00 1,449,87 1,787, Advertising 57,4,489 1,700,64 1,75,87 60,780, Postage, express, telegraph and telephone,664,84,577,75 1 5,4, Printing and stationery 8, , , Cost or depreciation of furniture and equipment 7,50 599,14 86, Rental of equipment 11,199 17,47 8, Cost or depreciation of EDP equipment and software 4,865,78 4,540,187 9,405, Books and periodicals 7,787 9, , Bureau and association fees 15,74 51, , Insurance, except on real estate 149,176 45,71 194, Miscellaneous losses 44,500 0,04 64, Collection and bank service charges,158,84 46,188,05, Sundry general expenses, , , Group service and administration fees 6.8 Reimbursements by uninsured plans 7.1 Agency expense allowance 44,00 5,56,077 5,400, Agents balances charged off (less $ recovered) 85,991 85, Agency conferences other than local meetings,910 1,90,87 1,94, Real estate expenses 9. Investment expenses not included elsewhere 18,891 18, Aggregate write-ins for expenses 17,468,4 10,159,748 7,080 7,849 8,699, General expenses incurred 119,847,009 66,4,040,07,95 87,009 (a) 189,169, General expenses unpaid December 1, prior year 1,68, ,159,594, General expenses unpaid December 1, current year 1,5,781 84,961,66,74 1. Amounts receivable relating to uninsured plans, prior year 14. Amounts receivable relating to uninsured plans, current year 15. General expenses paid during year (Lines ) 119,96,787 66,54,8,07,95 87, ,96,987 DETAILS OF WRITE-INS Investment advisory fees to affiliates 1,07,645 57,454 7,659 1,998, Other consulting and service fees 16,60,788 10,10,9 7, ,700, Summary of remaining write-ins for Line 9. from overflow page Totals (Lines thru 09.0 plus 09.98) (Line 9. above) 17,468,4 10,159,748 7,080 7,849 8,699,110 (a) Includes management fees of $ 10,69,17 to affiliates and $ to non-affiliates. EXHIBIT - TAXES, LICENSES AND FEES (EXCLUDING FEDERAL INCOME TAXES) Insurance Life Accident and Health All Other Lines of Business Investment Total 1. Real estate taxes 45,96 45,96. State insurance department licenses and fees 1,40,56 41,99 1,48,519. State taxes on premiums 5,4,54 8,,85 1,756, Other state taxes, including $ for employee benefits 64, , , U.S. Social Security taxes 1,718,4,05,105 4,08,774, All other taxes 710,17 485, ,195,40 7. Taxes, licenses and fees incurred 9,74,85 11,67,51 50,09 1,5, Taxes, licenses and fees unpaid December 1, prior year,977,061,576,787 6,55, Taxes, licenses and fees unpaid December 1, current year,486,99 4,05,419 7,51, Taxes, licenses and fees paid during year (Lines ) 9,5,047 10,808,881 50,09 0,84,17 EXHIBIT 4 - DIVIDENDS OR REFUNDS 1. Applied to pay renewal premiums. Applied to shorten the endowment or premium-paying period. Applied to provide paid-up additions 4. Applied to provide paid-up annuities 5. Total Lines 1 through 4 6. Paid in cash 7. Left on deposit 8. Aggregate write-ins for dividend or refund options 9. Total Lines 5 through Amount due and unpaid NONE 11. Provision for dividends or refunds payable in the following calendar year 1. Terminal dividends 1. Provision for deferred dividend contracts 14. Amount provisionally held for deferred dividend contracts not included in Line Total Lines 10 through Total from prior year 17. Total dividends or refunds (Lines ) DETAILS OF WRITE-INS Summary of remaining write-ins for Line 8 from overflow page Totals (Lines 0801 thru 080 plus 0898) (Line 8 above) 1 Life Accident and Health 11

12 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 5 - AGGREGATE RESERVE FOR LIFE CONTRACTS 1 Valuation Standard Total Industrial 4 Ordinary 5 Credit (Group and Individual) 6 Group CSO.5% NLP , ,086, CET.5% ,1, CSO % NLP ,016,455,015,69 1, CSO % CRVM ,045 86, CET % ,76 11, CSO.5% NLP ,170,9 15,170, CSO.5% CRVM ,059,406 7,059, CET.5% ,941, CSO.50% ,58,591 8,854,866 6,50, CSO.75% 01+,651,98 1,10,960 1,548, CSO 4.00% ,166,79 4,14,7 4, CET 4.00% , , CSO 4.00% ,717,871 89,871,9 66,845, CSO 4.5% CRVM ,4 69,464 16, CSO 4.5% CRVM ,891,640,00,690,888, CSO 4.5% CRVM ,97 4, CSO ALB 4.5% CRVM ,46,78 64,04,155 6,40, CSO ALB 4.5% CRVM 005 9,88,74 4,770,48 4,617, CSO ALB 4.75% CRVM ,48,64 50,81 96, CSO ALB 4.75% CRVM ,550 8,69 14, CSO ALB 5.0% CRVM ,41,55 4,606,714 7,806, CSO ALB 5.5% CRVM ,661,84 1,49,57 1,1, CSO ANB 5.5% CRVM ,587,400 1,587, CET ALB 4.5% ,646,15 1,747,5 1,898, CET ALB 5.0% ,991 18,41 9, CET ALB 5.5% ,19 75,470 66, UNEARNED PREMIUM 1980 CSO 5.5% 1,54 1, CSO ALB 6% CRVM ,584,741 1,770,60 814, CSO ANB 6% CRVM ,0,051 7,0, CET 6% ,045 5,166 9, UNEARNED PREMIUM 1980 CSO 6% 1,105 1, SI.5% CRVM CNF 4,64,881 4,64, CET ALB 4.0% NL CNF 164,09 164, CET ALB 4.5% NL CNF 581, , CET ALB 5.0% NL CNF 781, , CET ALB 5.5% NL CNF 98,86 98, CET ALB 6.0% NL CNF 1,181,06 1,181, CSO ANB.0% CRVM CNF 168, , CSO ANXB.0% CRVM CNF 9,58,574 9,58, CSO ANXB 4.0% NL CNF 76,961 76, CSO ANXB 4.5% CRVM CNF 57,66 57, CSO ANXB 5.5% CRVM CNF,090, CSI CET ANXB.5% NL CNF 777, , CSI ANXB.5% CRVM CNF 5,89,865 5,89, CSI ANXB 4.0% CRVM CNF 15,10 15, CET ALB 4.5% NL CNF,809,8,809, CSO 50/50 ANXB 4.0% CRVM CNF 6,78,784 6,78, CSO 50/50 ANXB 4.5% NL CNF 11,746 11, CSO 50/50 ANXB 5.0% NL CNF 95,874 95, CSO 50/50 ANXB 5.5% NL CNF 151,8 151, CSO 50/50 ANXB 6.0% NL CNF 17,958 17, CSO ALB 4.0% CRVM CNF 554, , CSO ALB 4.5% CRVM CNF Unearned Premium 1,6 1, Totals (Gross) 498,1,971 11,0,794 97,475,41 189,7, Reinsurance ceded 1,57,751 1,46,541 64, Life Insurance: Totals (Net) 496,596,0 11,0,794 96,011, ,6, a ALB %, Immediate 7,76 XXX 7,76 XXX IAM 7.75% / 5.75% Both 14,088,504 XXX 14,088,504 XXX GAM 7.75% / 5.75% 1986 Both 1,08,558 XXX XXX 1,08, a 7.0% Deferred 1,607,867 XXX 1,607,867 XXX a 7.0% / 5.5% Both 9,994,41 XXX 9,994,41 XXX a 7.75% / 5.75% Both 1,9,59 XXX 1,9,59 XXX DEPOSIT ADM CONTRACTS (VARIOUS) 580 XXX XXX Totals (Gross) 59,671,006 XXX 47,61,868 XXX 1,09, Reinsurance ceded 5,71,541 XXX 5,71,541 XXX Annuities: Totals (Net) 5,958,465 XXX 41,919,7 XXX 1,09, Reinsurance ceded SCWLC: Totals (Net) ADB W/ 1958 CSO % NLP ADB W/ 1958 CSO.5% NLP ADB W/ 001 CSO ALB.5% CRVM 807,19 414,149 9, ADB W/ 1980 CSO ALB 4.5% CRVM 584,78 1,58 71, ADB W/ 001 CSO ALB 4.0% CRVM 1,61, , , Totals (Gross),04,40 1,75,815 1,748, Reinsurance ceded Accidental Death Benefits: Totals (Net),04,40 1,75,815 1,748, DISABILITY STUDY W/ 1958 CSO % 7, , DISABILITY STUDY W/ 1958 CSO 4.5% 7,468 1,76 15, Totals (Gross) 4,5 1,580 1, Reinsurance ceded Disability-Active Lives: Totals (Net) 4,5 1,580 1, DISABILITY STUDY W/ 1958 CSO % 5,967 9,41 16, DISABILITY STUDY W/ 1958 CSO.5% 48,969 18,08 0, Totals (Gross) 74,96 7,549 47, Reinsurance ceded Disability-Disabled Lives: Totals (Net) 74,96 7,549 47, For excess of valuation net premiums over corresponding gross premiums on respective policies 1, ,065 1

13 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 5 - AGGREGATE RESERVE FOR LIFE CONTRACTS 1 Valuation Standard Total Industrial 4 Ordinary 5 Credit (Group and Individual) 6 Group For non-deduction of deferred fractional premiums or return of premiums at the death of the insured 10,048,845 5,671,49 4,77, IMMEDIATE PAYMENT OF CLAIMS 6,08,59,605,70,70, Totals (Gross) 16,70, ,90,196 7,080, Reinsurance ceded 8,148 7,014 1, Miscellaneous Reserves: Totals (Net) 16,4,16 5 9,6,18 7,079, Totals (Net) - Page, Line 1 570,00,861 11,0,819 48,510,4 10,199,

14 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 5 - INTERROGATORIES 1.1 Has the reporting entity ever issued both participating and non-participating contracts? Yes [ ] No [ X ] 1. If not, state which kind is issued. non-participating.1 Does the reporting entity at present issue both participating and non-participating contracts? Yes [ ] No [ X ]. If not, state which kind is issued. non-participating. Does the reporting entity at present issue or have in force contracts that contain non-guaranteed elements? Yes [ X ] No [ ] If so, attach a statement that contains the determination procedures, answers to the interrogatories and an actuarial opinion as described in the instructions. 4. Has the reporting entity any assessment or stipulated premium contracts in force? Yes [ ] No [ X ] If so, state: 4.1 Amount of insurance? $ 4. Amount of reserve? $ 4. Basis of reserve: 4.4 Basis of regular assessments: 4.5 Basis of special assessments: 4.6 Assessments collected during the year $ 5. If the contract loan interest rate guaranteed in any one or more of its currently issued contracts is less than 5%, not in advance, state the contract loan rate guarantees on any such contracts. N/A 6. Does the reporting entity hold reserves for any annuity contracts that are less than the reserves that would be held on a standard basis? Yes [ X ] No [ ] 6.1 If so, state the amount of reserve on such contracts on the basis actually held: $ 1,41, That would have been held (on an exact or approximate basis) using the actual ages of the annuitants; the interest rate(s) used in 6.1; and the same mortality basis used by the reporting entity for the valuation of comparable annuity benefits issued to standard lives. If the reporting entity has no comparable annuity benefits for standard lives to be valued, the mortality basis shall be the table most recently approved by the state of domicile for valuing individual annuity benefits: $ 14,04,471 Attach statement of methods employed in their valuation. 7. Does the reporting entity have any Synthetic GIC contracts or agreements in effect as of December 1 of the current year? Yes [ ] No [ X ] 7.1 If yes, state the total dollar amount of assets covered by these contracts or agreements $ 7. Specify the basis (fair value, amortized cost, etc.) for determining the amount: 7. State the amount of reserves established for this business: $ 7.4 Identify where the reserves are reported in the blank: 8. Does the reporting entity have any Contingent Deferred Annuity contracts or agreements in effect as of December 1 of the current year? Yes [ ] No [ X ] 8.1 If yes, state the total dollar amount of account value covered by these contracts or agreements: $ 8. State the amount of reserves established for this business: $ 8. Identify where the reserves are reported in the blank: 9. Does the reporting entity have any Guaranteed Lifetime Income Benefit contracts, agreements or riders in effect as of December 1 of the current year? Yes [ ] No [ X ] 9.1 If yes, state the total dollar amount of any account value associated with these contracts, agreements or riders: $ 9. State the amount of reserves established for this business: $ 9. Identify where the reserves are reported in the blank: EXHIBIT 5A - CHANGES IN BASES OF VALUATION DURING THE YEAR 1 Valuation Basis 4 Increase in Actuarial Reserve Due to Description of Valuation Class NONE Changed From Changed To Change Total (Column 4, only) 1

15 14 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 6 - AGGREGATE RESERVES FOR ACCIDENT AND HEALTH CONTRACTS 1 4 Other Individual Contracts Credit Accident Total Group Accident and Health and Health (Group and Individual) Collectively Renewable Non-Cancelable Guaranteed Renewable Non-Renewable for Stated Reasons Only Other Accident Only ACTIVE LIFE RESERVE 1. Unearned premium reserves 5,540,196 1,667 5,507, Additional contract reserves (a),98,74 58,155 1,07,658 0,407, Additional actuarial reserves-asset/liability analysis 4. Reserve for future contingent benefits 5. Reserve for rate credits 6. Aggregate write-ins for reserves 7. Totals (Gross) 47,88,99 614,8 1,07,658 45,914,800 1, Reinsurance ceded 1,008,546 1,008, Totals (Net) 16,80,9 614,8 1,07,658 14,906,54 1,659 CLAIM RESERVE 10. Present value of amounts not yet due on claims 4,500,850,417 4,1,56 56, Additional actuarial reserves-asset/liability analysis 1. Reserve for future contingent benefits,000, Aggregate write-ins for reserves 14. Totals (Gross) 4,50,850 5,417 4,1,56 56, Reinsurance ceded,651,518,589,75 61, Totals (Net) 85,1 5,417 61, , TOTAL (Net) 17,68,74 640,40 1,99,161 15,101,47 1, TABULAR FUND INTEREST 541,98,8 7,518 46,141 4 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 6 from overflow page TOTALS (Lines 0601 thru 060 plus 0698) (Line 6 above) Summary of remaining write-ins for Line 1 from overflow page 199. TOTALS (Lines 101 thru 10 plus 198) (Line 1 above) (a) Attach statement as to valuation standard used in calculating this reserve, specifying reserve bases, interest rates and methods. 9 All Other

16 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 7 - DEPOSIT TYPE CONTRACTS 1 Total Guaranteed Interest Contracts Annuities Certain 4 Supplemental Contracts 5 Dividend Accumulations or Refunds 6 Premium and Other Deposit Funds 1. Balance at the beginning of the year before reinsurance 50,070,715 50,070,715. Deposits received during the year. Investment earnings credited to the account 580,77 580,77 4. Other net change in reserves 5. Fees and other charges assessed 6. Surrender charges 7. Net surrender or withdrawal payments 599,05 599,05 8. Other net transfers to or (from) Separate Accounts Balance at the end of current year before reinsurance (Lines ) 50,05,18 50,05, Reinsurance balance at the beginning of the year 11. Net change in reinsurance assumed 1. Net change in reinsurance ceded 1. Reinsurance balance at the end of the year (Lines ) 14. Net balance at the end of current year after reinsurance (Lines 9 + 1) 50,05,18 50,05,18

17 1. Due and unpaid:. In course of settlement: 1.1 Direct 1. Reinsurance assumed 1. Reinsurance ceded 1.4 Net ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 8 - CLAIMS FOR LIFE AND ACCIDENT AND HEALTH CONTRACTS PART 1 - Liability End of Current Year 1 Ordinary 6 Group Accident and Health Total Industrial Life Life Insurance Individual Annuities Supplementary Contracts Credit Life (Group and Individual) Life Insurance Annuities Group Credit (Group and Individual).1 Resisted.11 Direct 98,000 15,000 8,000.1 Reinsurance assumed.1 Reinsurance ceded.14 Net 98,000 (b) 15,000 (b) (b) (b) 8, Other 16. Other.1 Direct 1,890,6 5,917,814 5,008,987 1,41 1,96,91. Reinsurance assumed 5,08 6,648 5,610 7,1,88. Reinsurance ceded 1,507,515 1,507,515.4 Net 11,46,16 6,648 (b) 5,95,44 (b) (b) (b) 5,008,987 (b) 8,55 (b) (b) 458,704. Incurred but unreported:.1 Direct 48,165,74 7,177,685,857,066 1,801 8,117,7. Reinsurance assumed 16,75 50,000 47,176 19,096. Reinsurance ceded 8,664,05 8,664,05.4 Net 19,817,4 (b) 7,47,685 (b) (b) (b),857,069 (b) 59,976 (b) (b) 9,47,51 4. TOTALS 4.1 Direct 61,15,896 1,110,499 7,949,05 14, 40,080,11 4. Reinsurance assumed 69,48 6,648 85,610 54,98,94 4. Reinsurance ceded 0,171,80 0,171, Net 1,51,559 (a) 6,648 (a) 1,96,109 (a) 7,949,056 68,50 9,91,17 (a) Including matured endowments (but not guaranteed annual pure endowments) unpaid amounting to $ in Column, $ in Column and $ in Column 7. (b) Include only portion of disability and accident and health claim liabilities applicable to assumed "accrued" benefits. Reserves (including reinsurance assumed and net of reinsurance ceded) for unaccrued benefits for Ordinary Life Insurance $ 7,549 Individual Annuities $, Credit Life (Group and Individual) $, and Group Life $ 47,87, are included in Page, Line 1, (See Exhibit 5, Section on Disability Disabled Lives); and for Group Accident and Health $ 5,417 Credit (Group and Individual) Accident and Health $, and Other Accident and Health $ 86,914 are included in Page, Line (See Exhibit 6, Claim Reserve).

18 17 ANNUAL STATEMENT FOR THE YEAR 016 OF THE COLONIAL PENN LIFE INSURANCE COMPANY EXHIBIT 8 - CLAIMS FOR LIFE AND ACCIDENT AND HEALTH CONTRACTS PART - Incurred During the Year 1 Ordinary 6 Group Accident and Health Total Industrial Life (a) Life Insurance (b) Individual Annuities Supplementary Contracts Credit Life (Group and Individual) Life Insurance (c) Annuities Group Credit (Group and Individual) 1. Settlements During the Year: 1.1 Direct 448,84,78 8,740,61,818,15 60,991,49 1,805,856,095 98,45, Reinsurance assumed,406, ,60 1,79,785 (,91) 18,98 98,94 1. Reinsurance ceded 4,765,9 408,054 10,678 4,6, Net (d) 16,48,94 408,60 85,16,44,66,55 60,991,49 1,805,856 16,078 64,5,78. Liability December 1, current year from Part 1:.1 Direct 61,15,896 1,110,499 7,949,05 14, 40,080,11. Reinsurance assumed 69,48 6,648 85,610 54,98,94. Reinsurance ceded 0,171,80 0,171,80.4 Net 1,51,559 6,648 1,96,109 7,949,056 68,50 9,91,17. Amounts recoverable from reinsurers December 1, current year 76,07 47,879,67 4,50 4. Liability December 1, prior year: 4.1 Direct 58,144,51 14,89,59 9,889,60,555,8, Reinsurance assumed 64,06,17 70,44 1,0 7,805 16, Reinsurance ceded 4,74,145 4,74, Net,766,40,17 15,16,97 9,890,8 96,60 8,61, Amounts recoverable from reinsurers December 1, prior year Incurred Benefits 6.1 Direct 451,851,66 81,957,519,818,15 59,051,85 1,805,856,77 05,195, Reinsurance assumed,411,50 411,691 1,809,051 (,91) (1,00) 110, ,19 6. Reinsurance ceded 40,70, ,9 154,15 9,660, Net 1,99,01 411,691 8,10,67,69,897 59,050,65 1,805,856 14,47 65,69,709 (a) Including matured endowments (but not guaranteed annual pure endowments) amounting to $ in Line 1.1, $ in Line 1.4. $ in Line 6.1, and $ in Line 6.4. (b) Including matured endowments (but not guaranteed annual pure endowments) amounting to $ 1,54,756 in Line 1.1, $ 1,54,756 in Line 1.4. $ 1,54,756 in Line 6.1, and $ 1,54,756 in Line 6.4. (c) Including matured endowments (but not guaranteed annual pure endowments) amounting to $ 01,4 in Line 1.1, $ 01,4 in Line 1.4. $ 01,4 in Line 6.1, and $ 01,4 in Line 6.4. (d) Includes $,710 premiums waived under total and permanent disability benefits. 11 Other