QUARTERLY STATEMENT OF THE. PIONEER MUTUAL LIFE INSURANCE COMPANY, a OneAmerica company

Transcription

1 QUARTERLY STATEMENT OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY, a OneAmerica company and a stock subsidiary of American United Mutual Insurance Holding Company OF Fargo IN THE STATE OF North Dakota TO THE INSURANCE DEPARTMENT OF THE STATE OF FOR THE QUARTER ENDED JUNE 0, 0 LIFE AND ACCIDENT AND HEALTH 0

2 LIFE AND ACCIDENT AND HEALTH COMPANIES - ASSOCIATION EDITION QUARTERLY STATEMENT AS OF JUNE 0, 0 OF THE CONDITION AND AFFAIRS OF THE Pioneer Mutual Life Insurance Company NAIC Group Code NAIC Company Code 679 Employer's ID Number (Current) (Prior) Organized under the Laws of North Dakota, State of Domicile or Port of Entry North Dakota Country of Domicile United States of America Incorporated/Organized 0/0/00 Commenced Business /4/947 Statutory Home Office 0 North 0th Street, Fargo, ND (Street and Number) (City or Town, State and Zip Code) Main Administrative Office One American Square (Street and Number) Indianapolis, IN , (City or Town, State and Zip Code) (Area Code) (Telephone Number) Mail Address P O Box 68, Indianapolis, IN (Street and Number or P.O. Box) (City or Town, State and Zip Code) Primary Location of Books and Records One American Square (Street and Number) Indianapolis, IN , (City or Town, State and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address Statutory Statement Contact Douglas W. Collins, (Name) (Area Code) (Telephone Number) doug.collins@oneamerica.com, ( Address) (FAX Number) OFFICERS President Mark Alan Wilkerson Executive Vice President James Scott Davison Secretary Thomas Michael Zurek Actuary Stephen James McWilliams OTHER Dayton Harold Molendorp CEO Douglas Wayne Collins Vice President James Charles Crampton Vice President Jay Brian Williams Vice President DIRECTORS OR TRUSTEES Dayton Harold Molendorp - Chairman James Scott Davison Mark Cameron Roller George David Sapp Mark Alan Wilkerson Thomas Michael Zurek State of County of Indiana Marion SS: The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: () state law may differ; or, () that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. Mark A. Wilkerson Thomas M. Zurek J. Scott Davison President Secretary Executive Vice President a. Is this an original filing? Yes [ X ] No [ ] Subscribed and sworn to before me this b. If no, 5th day of August, 0. State the amendment number. Date filed. Number of pages attached Laura M. Speheger Notary Public September 4, 0

3 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY ASSETS Assets Current Statement Date 4 December Net Admitted Assets Prior Year Net Nonadmitted Assets (Cols. - ) Admitted Assets. Bonds. Stocks:. Preferred stocks. Common stocks. Mortgage loans on real estate:. First liens. Other than first liens 4. Real estate: 4. Properties occupied by the company (less $ encumbrances) 4. Properties held for the production of income (less $ encumbrances) 4. Properties held for sale (less $ encumbrances) 5. Cash ($ ), cash equivalents ($ ) and short-term investments ($ ) 6. Contract loans (including $ premium notes) 7. Derivatives 8. Other invested assets 9. Receivables for securities 0. Securities lending reinvested collateral assets. Aggregate write-ins for invested assets. Subtotals, cash and invested assets (Lines to ). Title plants less $ charged off (for Title insurers only) 4. Investment income due and accrued 5. Premiums and considerations: 5. Uncollected premiums and agents' balances in the course of collection 5. Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums) 5. Accrued retrospective premiums 6. Reinsurance: 6. Amounts recoverable from reinsurers 6. Funds held by or deposited with reinsured companies 6. Other amounts receivable under reinsurance contracts 7. Amounts receivable relating to uninsured plans 8. Current federal and foreign income tax recoverable and interest thereon 8. Net deferred tax asset 9. Guaranty funds receivable or on deposit 0. Electronic data processing equipment and software. Furniture and equipment, including health care delivery assets ($ ). Net adjustment in assets and liabilities due to foreign exchange rates. Receivables from parent, subsidiaries and affiliates 4. Health care ($ ) and other amounts receivable 5. Aggregate write-ins for other than invested assets 6. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 8. Total (Lines 6 and 7) DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 through 0 plus 98)(Line above) Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 through 50 plus 598)(Line 5 above)

4 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS Current Statement Date December Prior Year. Aggregate reserve for life contracts $ less $ included in Line 6. (including $ Modco Reserve). Aggregate reserve for accident and health contracts (including $ Modco Reserve). Liability for deposit-type contracts (including $ Modco Reserve) 4. Contract claims: 4. Life 4. Accident and health 5. Policyholders dividends $ and coupons $ due and unpaid 6. Provision for policyholders dividends and coupons payable in following calendar year - estimated amounts: 6. 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 $ accident and health premiums 9. Contract liabilities not included elsewhere: 9. Surrender values on canceled contracts 9. Provision for experience rating refunds, including $ accident and health experience rating refunds 9. Other amounts payable on reinsurance, including $ assumed and $ ceded 9.4 Interest Maintenance Reserve 0. Commissions to agents due or accrued-life and annuity contracts $, accident and health $ 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 $ accrued for expense allowances recognized in reserves, net of reinsured allowances) 4. Taxes, licenses and fees due or accrued, excluding federal income taxes 5. Current federal and foreign income taxes, including $ on realized capital gains (losses) 5. Net deferred tax liability 6. Unearned investment income 7. Amounts withheld or retained by company as agent or trustee 8. Amounts held for agents'account, including $ agents'credit balances 9. Remittances and items not allocated 0. Net adjustment in assets and liabilities due to foreign exchange rates. 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: 4.0 Asset valuation reserve 4.0 Reinsurance in unauthorized companies 4.0 Funds held under reinsurance treaties with unauthorized reinsurers 4.04 Payable to parent, subsidiaries and affiliates 4.05 Drafts outstanding 4.06 Liability for amounts held under uninsured plans 4.07 Funds held under coinsurance 4.08 Derivatives 4.09 Payable for securities 4.0 Payable for securities lending 4. Capital notes $ and interest thereon $ 5. Aggregate write-ins for liabilities 6. Total liabilities excluding Separate Accounts business (Lines to 5) 7. From Separate Accounts Statement 8. Total liabilities (Lines 6 and 7) 9. Common capital stock 0. Preferred capital stock. Aggregate write-ins for other than special surplus funds. Surplus notes. Gross paid in and contributed surplus 4. Aggregate write-ins for special surplus funds 5. Unassigned funds (surplus) 6. Less treasury stock, at cost: 6. shares common (value included in Line 9 $ ) 6. shares preferred (value included in Line 0 $ ) 7. Surplus (Total Lines ) (including $ in Separate Accounts Statement) 8. Totals of Lines 9, 0 and 7 9. Totals of Lines 8 and 8 (Page, Line 8, Col. ) DETAILS OF WRITE-INS ! 598. Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 through 50 plus 598)(Line 5 above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 through 0 plus 98)(Line above) #$ 40. %& 498. Summary of remaining write-ins for Line 4 from overflow page 499. Totals (Lines 40 through 40 plus 498)(Line 4 above)

5 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY SUMMARY OF OPERATIONS Current Year Prior Year To Date Prior Year Ended December To Date. Premiums and annuity considerations for life and accident and health contracts. Considerations for supplementary contracts with life contingencies. Net investment income 4. Amortization of Interest Maintenance Reserve (IMR) 5. Separate Accounts net gain from operations excluding unrealized gains or losses 6. Commissions and expense allowances on reinsurance ceded 7. Reserve adjustments on reinsurance ceded 8. Miscellaneous Income: 8. 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 9. Totals (Lines to 8.) 0. Death benefits. Matured endowments (excluding guaranteed annual pure endowments). Annuity benefits. Disability benefits and benefits under accident and health contracts 4. Coupons, guaranteed annual pure endowments and similar benefits 5. Surrender benefits and withdrawals for life contracts 6. Group conversions 7. Interest and adjustments on contract or deposit-type contract funds 8. Payments on supplementary contracts with life contingencies 9. Increase in aggregate reserves for life and accident and health contracts 0. Totals (Lines 0 to 9). Commissions on premiums, annuity considerations, and deposit-type contract funds (direct business only). Commissions and expense allowances on reinsurance assumed. General insurance expenses 4. Insurance taxes, licenses and fees, excluding federal income taxes 5. Increase in loading on deferred and uncollected premiums 6. Net transfers to or (from) Separate Accounts net of reinsurance 7. Aggregate write-ins for deductions 8. Totals (Lines 0 to 7) 9. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 8) 0. Dividends to policyholders. Net gain from operations after dividends to policyholders and before federal income taxes (Line 9 minus Line 0). 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 minus Line ) 4. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $ (excluding taxes of $ transferred to the IMR) 5. Net income (Line plus Line 4) CAPITAL AND SURPLUS ACCOUNT 6. Capital and surplus, December, prior year 7. Net income (Line 5) 8. Change in net unrealized capital gains (losses) less capital gains tax of $ 9. Change in net unrealized foreign exchange capital gain (loss) 40. Change in net deferred income tax 4. Change in nonadmitted assets 4. Change in liability for reinsurance in unauthorized companies 4. Change in reserve on account of change in valuation basis, (increase) or decrease 44. Change in asset valuation reserve 45. Change in treasury stock 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. Paid in 50. Transferred from surplus (Stock Dividend) 50. Transferred to surplus 5. Surplus adjustment: 5. Paid in 5. Transferred to capital (Stock Dividend) 5. Transferred from capital 5.4 Change in surplus as a result of reinsurance 5. Dividends to stockholders 5. Aggregate write-ins for gains and losses in surplus 54. Net change in capital and surplus for the year (Lines 7 through 5) 55. Capital and surplus, as of statement date (Lines ) DETAILS OF WRITE-INS Summary of remaining write-ins for Line 8. from overflow page Totals (Lines 08.0 through 08.0 plus 08.98) (Line 8. above) Summary of remaining write-ins for Line 7 from overflow page 799. Totals (Lines 70 through 70 plus 798)(Line 7 above) !! Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 through 50 plus 598)(Line 5 above) 4

6 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY Cash from Operations CASH FLOW Current Year To Date Prior Year To Date Prior Year Ended December. Premiums collected net of reinsurance. Net investment income. Miscellaneous income 4. Total (Lines to ) 5. Benefit and loss related payments 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts 7. Commissions, expenses paid and aggregate write-ins for deductions 8. Dividends paid to policyholders 9. Federal and foreign income taxes paid (recovered) net of $ tax on capital gains (losses) 0. Total (Lines 5 through 9). Net cash from operations (Line 4 minus Line 0) Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds. Stocks. Mortgage loans.4 Real estate.5 Other invested assets.6 Net gains or (losses) on cash, cash equivalents and short-term investments.7 Miscellaneous proceeds.8 Total investment proceeds (Lines. to.7). Cost of investments acquired (long-term only):. Bonds. Stocks. Mortgage loans.4 Real estate.5 Other invested assets.6 Miscellaneous applications.7 Total investments acquired (Lines. to.6) 4. Net increase (or decrease) in contract loans and premium notes 5. Net cash from investments (Line.8 minus Line.7 and Line 4) 6. Cash provided (applied): Cash from Financing and Miscellaneous Sources 6. Surplus notes, capital notes 6. Capital and paid in surplus, less treasury stock 6. Borrowed funds 6.4 Net deposits on deposit-type contracts and other insurance liabilities 6.5 Dividends to stockholders 6.6 Other cash provided (applied) 7. Net cash from financing and miscellaneous sources (Line 6. through Line 6.4 minus Line 6.5 plus Line 6.6) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents and short-term investments (Line, plus Lines 5 and 7) 9. Cash, cash equivalents and short-term investments: 9. Beginning of year 9. End of period (Line 8 plus Line 9.) Note: Supplemental disclosures of cash flow information for non-cash transactions: 5

7 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY EXHIBIT DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS Current Year To Date Prior Year To Date Prior Year Ended December. Industrial life. Ordinary life insurance. Ordinary individual annuities 4. Credit life (group and individual) 5. Group life insurance 6. Group annuities 7. A & H - group 8. A & H - credit (group and individual) 9. A & H - other 0. Aggregate of all other lines of business. Subtotal. Deposit-type contracts. Total DETAILS OF WRITE-INS Summary of remaining write-ins for Line 0 from overflow page 099. Totals (Lines 00 through 00 plus 098)(Line 0 above) 6

8 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS For purposes of the quarterly interim financial information, it is presumed that the users of the interim financial information have read or have access to the Annual Statement as of December, 00. This presentation addresses only significant events occurring since this last annual statement.. Summary of Significant Accounting Policies The accompanying financial statements of Pioneer Mutual Life Insurance Company (the Company ), have been prepared in conformity with the National Association of Insurance Commissions ( NAIC ) Annual Statement Instructions and Accounting Practices and Procedures manuals, except to the extent that state laws may differ. The statements are also prepared in conformity with accounting practices prescribed or permitted by the Insurance Department of North Dakota. The preparation of financial statements in conformity with the statutory accounting practices prescribed or permitted by the Insurance Department of North Dakota requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.. Accounting Changes and Correction of Errors not applicable.. Business Combinations and Goodwill not applicable. 4. Discontinued Operations not applicable. 5. Investments A. Mortgage Loans no significant changes B. Debt Restructuring the Company has no invested assets that are restructured debt. C. Reverse Mortgages the Company has no investment in reverse mortgages. D. Loan-Backed Securities () Prepayment assumptions for mortgage-backed securities were obtained from broker dealer survey values. () In the aggregate, securities with a recognized other-than-temporary impairment not applicable. () For each security, with a recognized other-then-temporary impairment not applicable. (4) Impaired securities for which an other-than-temporary impairment has not been recognized not applicable. (5) Considerations in reaching the conclusion an impairment is not other-than-temporary not applicable. E. Repurchase Agreements and/or Securities Lending Transactions no change. F. Real Estate no change. G. Low-income Housing Tax Credits no change. 6. Joint Ventures, Partnerships and Limited Liability Companies no change. 7. Investment Income no change. 8. Derivative Instruments the Company has no derivative instruments. 9. Income Taxes A. The components of the net admitted deferred tax asset recognized in the Company s Assets, Liabilities, Surplus and Other Funds are as follows: 06/0/ //0 Ordinary Capital Total Ordinary Capital Total Gross deferred tax assets $ 0,654,40 $ 449,88 $,04,9 $ 0,709,6 $ 454,80 $,64,066 Less: valuation allowance $ - $ Adjusted gross deferred tax asset $ 0,654,40 $ 449,88 $,04,9 $ 0,709,6 $ 454,80 $,64,066 Deferred tax liabilities,00,97 -,00,97,5,47 -,5,47 Net deferred tax asset 9,6, ,88 0,07,0 9,58, ,80 0,08,649 Nonadmitted deferred tax asset,54,67 6,099,07 40,89 9,58 6,8,846 6,0,998 9,58 6,05,56 Net admitted deferred tax asset $,54,67 $ 40,89 $,94,456 $,570,848 $ 45,65 $,986, (Increase) Decrease in nonadmitted tax asset $ (86,0) The Company has elected to admit deferred tax assets pursuant to SSAP 0R 0.e. effective for the period ending June 0, 0 and December, 00. The additional deferred tax asset recognized as a result of the adoption of SSAP 0R and separately reported as a component of the Aggregate write-ins for special surplus funds line of Liabilities, Surplus, and Other Funds is as follows: 06/0/ //0 Change Ordinary deferred tax asset $,5,684 $,86,50 $ (70,666) Capital deferred tax asset Additional deferred tax asset $,5,684 $,86,50 $ (70,666) Net admitted deferred tax assets separately reported as special surplus funds-additional deferred tax asset in the Statement of Changes in Surplus Increase in nonadmitted deferred tax assets prior to the application of SSAP 0R 0.e Total increase in nonadmitted deferred tax assets $ $ (70,666) (5,644) (86,0) 7

9 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY The admitted deferred tax asset is determined from the following components: 06/0/ //0 Ordinary Capital Total Ordinary Capital Total Admission calculation components: SSAP 0R 0a, 0b, 0c (a) SSAP 0R 0.a. $,408,48 $ 40,89 $,88,77 $,84,498 $ 45,64 $,799,76 (b) SSAP 0R 0.b (c) SSAP 0R 0.b.i (d) SSAP 0R 0.b.ii - -,09, ,059,6 (e) SSAP 0R 0.c.,00,97 -,00,97,5,47 -,5,47 (f) Total (a + b + e) $,49,40 $ 40,89 $,849,699 $,509,95 $ 45,64 $,95,79 Admission calculation components: SSAP 0R 0e (g) SSAP 0R 0.e.i. $,54,67 $ 40,89 $,94,456 $,7,497 $ 45,64 $,55,76 (h) SSAP 0R 0.e.ii ,5-4,5 (i) SSAP 0R 0.e.ii.a ,5-4,5 (j) SSAP 0R 0.e.ii.b - - 4,58, ,589,448 (k) SSAP 0R 0.e.iii,00,97 -,00,97,5,47 -,5,47 ] Total (g + h + k) $ 4,555,094 $ 40,89 $ 4,965,8 $ 4,696,65 $ 45,64 $ 5,,59 (m) Total adjusted capital N/A $ 6,6,989 (n) Authorized control level N/A $,66,870 The following balance sheet items reflect the application of these specified paragraphs of SSAP0R; 06/0/ //0 Ordinary Capital Total Ordinary Capital Total SSAP 0R, 0.a., 0.b., and 0.c. (a) Admitted deferred tax assets $,49,40 $ 40,89 $,849,699 $,509,95 $ 45,64 $,95,79 (b) Admitted assets $ 48,007,6 $ 475,4,774 (c) Statutory surplus $ 0,90,58 $ 0,596, (d) Total adjusted capital from DTAs $,88,77 $,799,76 Increases due to SSAP 0R, 0.e. (e) Admitted deferred tax assets $,5,684 $,5,684 $,86,50 $,86,50 (f) Admitted assets $,5,684 $,5,684 $,86,50 $,86,50 (g) Statutory surplus $,5,684 $,5,684 $,86,50 $,86,50 The impact of tax-planning strategies is as follows; 06/0/ //0 Ordinary Capital Total Ordinary Capital Total Adjusted gross DTAs % of total adjusted gross DTAs 0.0% 9.%.7% 0.0% 9.%.7% Net admitted adjusted DTAs % of total net admitted adjusted DTAs 0.0% 00.0% 0.4% 0.0% 00.0% 0.4% B. Deferred tax liabilities are not recognized for the following amounts: None. C. The significant components of the current income tax provision are as follows: 06/0/ //0 Ch ange Federal income tax-operating $,40,56 $,76,49 7 $ (59,95) Federal income tax-capital gains 05,96 7,6 8 88,8 Federal income tax incurred $,606,858 $,878,66 5 $ (7,807) 7.

10 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: Deferred tax assets (a) Ordinary; 06/0/ //0 Ch ange Policyholder res erves $ 5,46,6 $ 5,,0 $,40 Deferred acquisiti on cost s 4,775,56 4,798,70 9 (,7) Policyholder di vidend accrual 8,659 84,88 7 (,8) Fixed and amort izable assets 54, 59,6 0 (5,99) Recei vables nonadmi tted 4,78 45,99 9 (4,7) Ot her 9,5 87,0 6 5,9 Ordinary deferred tax assets 0,654,40 0,709,6 (54,86) (b) Statutory valuation allowance adjust ment (c ) Nonadmitted deferred t ax assets 6,099,07 6,0, ,09 (d) Admit ted ordinary deferred tax asset s (a - b - c) $ 4,555,094 $ 4,696,6 5 $ (4,7) (e) Capi tal Investmen ts 449,88 454,80 (4,975) (f) Statutory valuation allowance adjust ment (g) Nonadmitted 9,58 9,5 8 - (h) Admit ted capital deferred tax assets (e - f - g) 40,89 45,6 5 (4,975) (i) Admitted deferred tax assets (d + h) $ 4,965,8 $ 5,,5 0 $ (46,47) Deferred tax liabilit ies (a) Ordinary; Investments $ 48,44 $ 80,60 $ 7,8 Fixed asset s 57,097 6,8 (4,76) Deferred and uncol lected premium 554,6 68,99 (8,7) Policyholder reserves Other Ordinary deferred tax liab iliti es,00,97,5,4 7 (94,490) (b) C apital - investments (c ) Deferred tax liabili ties (a + b) $,00,97 $,5,4 7 $ (94,490) Net admitt ed deferred tax asset (i - c) $,94,456 $,986, $ (5,657) - The change in net deferred taxes is comprised of the following (exclusive of the change in nonadmitted assets reported as a component of the Change in Nonadmitted Assets): 06/0/ //0 Ordinary Capital Total Ordinary Capital Total Gross deferred tax assets $ 0,654,40 $ 449,88 $,04,9 $ 0,709,6 $ 454,80 $,64,066 Deferred tax liabilities,00,97 -,00,97,5,47 -,5,47 Net deferred tax asset 9,6, ,88 0,07,0 9,58, ,80 0,08,649 Tax effect of unrealized gains - 9,58 9,58-4,676 4,676 Net deferred income tax asset, excluding unrealized gains Change in tax effect of unrealized gains $,8 Change in net deferred income tax asset, excluding unrealized gains $ (7,79) $9,6,474 $40,90 $0,0,764 $9,58,846 $4,7 $9,995,97 7.

11 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY D. The federal income tax incurred differs from the enacted rate due to the following: Effect ive 06/0/ Tax Rat e Tax expense at the federal st atuto ry rate of 5% $,565,7 5.0% N ondeduc tibl e e xpense s 4,54 0.% Change i n intere st mainte nance reserve (47,00) -.% Change i n nonadmit ted a sset 46,8.% $,569,067 5.% F ederal and foreign i ncome taxes inc urred,606,858 Change i n net deferred inco me taxes (7,79) Total stat utory i ncome tax $,569,067 E. At June 0, 0, the Company had no losses or credits to carryforward to succeeding years. Taxes paid and available for recoupment in the event of future losses are as follows: 0 $,606,858 00,887,8 009,5,0 F. The Company s Federal Income Tax return is consolidated with the following entities: American United Life Insurance Company American United Mutual Insurance Holding Company AUL Equity Sales Insurance Agency, Inc. OneAmerica Financial Partners, Inc. OneAmerica Securities, Inc. OneAmerica Securities Insurance Agency R.E. Moulton, Inc. McCready & Keene, Inc. The State Life Insurance Company The method of allocation between the companies is subject to an executed Tax Sharing Agreement and is based upon separate return calculations with current credit for losses and tax credits. Intercompany tax balances are settled quarterly. 0. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties A. Nature of the relationship no change. B. Description of transactions not applicable. C. Amount of transactions described above in 0 B. not applicable. D. Amounts due to or from related parties - $69,67 represents a receivable from American United Life. The settlement terms require balances to be settled monthly. E. Guarantees no change. F. Management and service contracts no change. G. Nature of control relationships no change. H. Amount withheld from an upstream entity not applicable. I. Investments in an SCA entity not applicable. J. Investments in an impaired SCA entity not applicable. K. The Company does not have an investment in a foreign insurance subsidiary. L. The Company does not hold an investment in a downstream noninsurance holding company.. Debt - no change.. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans no significant change.. Capital and Surplus, Shareholders Dividend Restrictions and Quasi-Reorganizations no significant change. 4. Contingencies no change. 5. Leases no significant change. 7.

12 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY 6. Information About Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations of Credit Risk not applicable. 7. Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities A. Transfers of Receivables reported as Sales not applicable. B. Transfer and Servicing of Financial Assets not applicable. C. Wash Sales the Company has no wash sales. 8. Gain or Loss to the Reporting Entity from Uninsured A&H Plans and the Uninsured Portion of Partially Insured Plans the Company is not engaged in any business using uninsured A&H plans. 9. Direct Premium Written/Produced by Managing General Agents/Third Party Administration no significant change. 0. Fair Value Measurement () Assets Measured at Fair Value Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Fair J une 0, 0 Level Level Level Value Common stocks -industrial & misc $ - $ - $ - $ - Total assets measured at fair value $ - $ - $ - $ - Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Fair December, 00 Level Level Level Value Common stocks -industrial & misc $ - $ - $ 67,606 $ 67,606 Total assets measured at fair value $ - $ - $ 67,606 $ 67,606 There were no transfers between Level and Level of the fair value hierarchy. The Company s policy is to recognize transfers between levels as of the beginning of the reporting period. () Fair Value Measurements in Level of the Fair Value Hierarchy Gains (losses) Fair Value from Sales, Unrealized Purchases, Level Fair Value January, Maturities gains/ Issuances, Transfers June 0, 0 Settlements (losses) Settlements Out 0 Common stocks -industrial & misc $ 67,606 $ 5, $ 8,96 $ (0,680) $ - $ - Total assets $ 67,606 $ 5, $ 8,96 $ (0,680) $ - $ - () There were no transfers into or out of Level of the fair value hierarchy. (4) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Authoritative guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value based on their observability. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. These generally provide the most reliable evidence and are used to measure fair value whenever available. Active markets provide current pricing data on a more frequent basis. Examples include exchange-traded equity securities. Level Fair value is based on quoted prices for similar assets or liabilities in active markets, inactive markets, or modelderived valuations in which all significant inputs and significant value drivers are observable in active markets. This level includes financial instruments that are valued by independent pricing services using models or other valuation methodologies. These models are primarily industry-standard models that consider various inputs which are observable or derived from observable information in the marketplace. Examples include certain equity securities. Level Fair value is based on valuations derived from techniques in which one or more significant inputs or significant value drivers are unobservable for assets or liabilities. Examples include other less liquid securities. In certain instances, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level disclosed is based on the lowest level significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement and ultimate classification of each asset and liability requires judgment. The Company is responsible for the determination of fair value and therefore performs quantitative and qualitative analysis of prices received from third parties. (5) The Company does not invest in derivatives. 7.4

13 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY. Other Items A. Extraordinary Items not applicable. B. Troubled Debt Restructuring not applicable. C. Other Disclosures no significant change. D. Balances that are Reasonably Possible to be Uncollectible not material. M. Business Interruption Insurance Recoveries not applicable. N. State Transferable Tax Credits not applicable. O. Subprime Mortgage Related Risk Exposure no significant change. P. Retained Assets no significant change.. Events Subsequent not applicable.. Reinsurance no significant change. 4. Retrospectively Rated Contracts & Contracts Subject to Redetermination no significant change. 5. Change in Incurred Losses and Loss Adjustment Expenses no change. 6. Intercompany Pooling Arrangements not applicable. 7. Structured Settlements not applicable. 8. Health Care Receivables not applicable. 9. Participating Policies no significant change. 0. Premium Deficiency Reserves not applicable.. Reserves for Life Contracts and Annuity Contracts no significant change.. Analysis of Annuity Actuarial Reserves and Deposit Type Liabilities by Withdrawal Characteristics no significant change.. Premium and Annuity Considerations Deferred and Uncollected no significant change. 4. Separate Accounts the Company is not engaged in Separate Accounts. 5. Loss/Claim Adjustment Expenses not applicable. 7.5

14 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY GENERAL INTERROGATORIES PART - COMMON INTERROGATORIES GENERAL. 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?. If yes, has the report been filed with the domiciliary state?. 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?. If yes, date of change:. Have there been any substantial changes in the organizational chart since the prior quarter end? If yes, complete the Schedule Y - Part - organizational chart. 4. Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? 4. If yes, provide the name of the 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. Name of Entity NAIC Company Code State of Domicile 5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorneyin-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? If yes, attach an explanation. 6. State as of what date the latest financial examination of the reporting entity was made or is being made. 6. 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. 6. 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). 6.4 By what department or departments? North Dakota 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? 6.6 Have all of the recommendations within the latest financial examination report been complied with? 7. 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? 7. If yes, give full information: 8. Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? 8. If response to 8. is yes, please identify the name of the bank holding company. 8. Is the company affiliated with one or more banks, thrifts or securities firms? 8.4 If response to 8. 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 Office of Thrift Supervision (OTS), 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 4 OCC 5 OTS 6 FDIC 7 SEC 8

15 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY GENERAL INTERROGATORIES 9. 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? (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. 9. If the response to 9. is No, please explain: 9. Has the code of ethics for senior managers been amended? 9. If the response to 9. is Yes, provide information related to amendment(s). 9. Have any provisions of the code of ethics been waived for any of the specified officers? 9. If the response to 9. is Yes, provide the nature of any waiver(s). FINANCIAL 0. Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page of this statement? 0. If yes, indicate any amounts receivable from parent included in the Page amount: $ INVESTMENT. 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.). If yes, give full and complete information relating thereto:. 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: $ 4. Does the reporting entity have any investments in parent, subsidiaries and affiliates? 4. If yes, please complete the following: Prior Year-End Book/Adjusted Carrying Value Current Quarter Book/Adjusted Carrying Value 4. Bonds $ $ 4. Preferred Stock $ $ 4. Common Stock $ $ 4.4 Short-Term Investments $ $ 4.5 Mortgage Loans on Real Estate $ $ 4.6 All Other $ $ 4.7 Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 4. to 4.6) $ $ 4.8 Total Investment in Parent included in Lines 4. to 4.6 above $ $ 5. Has the reporting entity entered into any hedging transactions reported on Schedule DB? 5. If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? If no, attach a description with this statement. 8.

16 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY GENERAL INTERROGATORIES 6. Excluding items in Schedule E - Part - 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, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? 6. For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following: Name of Custodian(s) Custodian Address 6. 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) 6. Have there been any changes, including name changes, in the custodian(s) identified in 6. during the current quarter? 6.4 If yes, give full information relating thereto: Old Custodian New Custodian Date of Change 4 Reason 6.5 Identify all investment advisors, brokers/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! #$%&$'$()%* #+, #$%-)($+ $(. 7. Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed? 7. If no, list exceptions: 8.

17 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY GENERAL INTERROGATORIES PART - LIFE & HEALTH. Report the statement value of mortgage loans at the end of this reporting period for the following categories: Amount. Long-Term Mortgages In Good Standing. Farm Mortgages $. Residential Mortgages $. Commercial Mortgages $.4 Total Mortgages in Good Standing $. Long-Term Mortgages In Good Standing with Restructured Terms. Total Mortgages in Good Standing with Restructured Terms $. Long-Term Mortgage Loans Upon which Interest is Overdue more than Three Months. Farm Mortgages $. Residential Mortgages $. Commercial Mortgages $.4 Total Mortgages with Interest Overdue more than Three Months $.4 Long-Term Mortgage Loans in Process of Foreclosure.4 Farm Mortgages $.4 Residential Mortgages $.4 Commercial Mortgages $.44 Total Mortgages in Process of Foreclosure $.5 Total Mortgage Loans (Lines ) (Page, Column, Lines. +.) $.6 Long-Term Mortgages Foreclosed, Properties Transferred to Real Estate in Current Quarter.6 Farm Mortgages $.6 Residential Mortgages $.6 Commercial Mortgages $.64 Total Mortgages Foreclosed and Transferred to Real Estate $. Operating Percentages:. 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?. 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?.4 If yes, please provide the balance of the funds administered as of the reporting date $ 9

18 NAIC Company Code Federal ID Number Effective Date STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY SCHEDULE S - CEDED REINSURANCE 4 Name of Reinsurer Showing All New Reinsurance Treaties - Current Year to Date NONE 5 Domiciliary Jurisdiction 6 Type of Reinsurance Ceded 7 Is Insurer Authorized? (Yes or No) 0

19 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY SCHEDULE T - PREMIUMS AND ANNUITY CONSIDERATIONS Current Year To Date - Allocated by States and Territories Direct Business Only Life Contracts Accident and Health Insurance Premiums, Including Policy, Total Life Insurance Annuity Membership Other Columns Premiums Considerations and Other Fees Considerations Through 5 States, Etc. Active Status Deposit-Type Contracts. Alabama AL. Alaska AK. Arizona AZ 4. Arkansas AR 5. California CA 6. Colorado CO 7. Connecticut CT 8. Delaware DE 9. District of Columbia DC 0. Florida FL. Georgia GA. Hawaii HI. Idaho ID 4. Illinois IL 5. Indiana IN 6. Iowa IA 7. Kansas KS 8. Kentucky KY 9. Louisiana LA 0. Maine ME. Maryland MD. Massachusetts MA. Michigan MI 4. Minnesota MN 5. Mississippi MS 6. Missouri MO 7. Montana MT 8. Nebraska NE 9. Nevada NV 0. New Hampshire NH. New Jersey NJ. New Mexico NM. New York NY 4. North Carolina NC 5. North Dakota ND 6. Ohio OH 7. Oklahoma OK 8. Oregon OR 9. Pennsylvania PA 40. Rhode Island RI 4. South Carolina SC 4. South Dakota SD 4. Tennessee TN 44. Texas TX 45. Utah UT 46. Vermont VT 47. Virginia VA 48. Washington WA 49. West Virginia WV 50. Wisconsin WI 5. Wyoming WY 5. American Samoa AS 5. Guam GU 54. Puerto Rico PR 55. U.S. Virgin Islands VI 56. Northern Mariana Islands MP 57. Canada CN 58. Aggregate Other Aliens OT XXX 59. Subtotal (a) 90. Reporting entity contributions for employee benefits plans XXX 9. Dividends or refunds applied to purchase paid-up additions and annuities XXX 9. Dividends or refunds applied to shorten endowment or premium paying period XXX 9. Premium or annuity considerations waived under disability or other contract provisions XXX 94. Aggregate or other amounts not allocable by State XXX 95. Totals (Direct Business) XXX 96. Plus Reinsurance Assumed XXX 97 Totals (All Business) XXX 98. Less Reinsurance Ceded XXX 99. Totals (All Business) less Reinsurance Ceded XXX DETAILS OF WRITE-INS 580. XXX 580. XXX 580. XXX Summary of remaining write-ins for Line 58 from overflow page XXX Totals (Lines 580 through 580 plus 5898)(Line 58 above) XXX 940. XXX 940. XXX 940. XXX Summary of remaining write-ins for Line 94 from overflow page XXX Totals (Lines 940 through 940 plus 9498)(Line 94 above) XXX (L) Licensed or Chartered - Licensed Insurance Carrier or Domiciled 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.

20 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY SCHEDULE Y - INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART - ORGANIZATIONAL CHART NONE

21 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a NONE report and a bar code will be printed below. If the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions. Response. Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement?. Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement?. Will the Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically with the NAIC? 4. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically with the NAIC? 5. Will the Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI be filed with the state of domicile and electronically with the NAIC? 6. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Average Market Value) be filed with the state of domicile and electronically with the NAIC? 7. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) be filed with the state of domicile and electronically with the NAIC? Explanation: Bar Code:. Trusteed Surplus Statement [Document Identifier 490]. Medicare Part D Coverage Supplement [Document Identifier 65]. Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV [Document Identifier 445] 4. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV [Document Identifier 446] 5. Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI [Document Identifier 447] 6. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI [Document Identifier 448] 7. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) [Document Identifier 449]

22 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY OVERFLOW PAGE FOR WRITE-INS Additional Write-ins for Liabilities Line 5 Current Statement Date December Prior Year Summary of remaining write-ins for Line 5 from overflow page 4

23 STATEMENT AS OF JUNE 0, 0 OF THE PIONEER MUTUAL LIFE INSURANCE COMPANY SCHEDULE A - VERIFICATION Real Estate. Book/adjusted carrying value, December of prior year. Cost of acquired:. Actual cost at time of acquisition. Additional investment made after acquisition NONE. Current year change in encumbrances 4. Total gain (loss) on disposals 5. Deduct amounts received on disposals 6. Total foreign exchange change in book/adjusted carrying value 7. Deduct current year s other than temporary impairment recognized 8. Deduct current year s depreciation 9. Book/adjusted carrying value at the end of current period (Lines ) 0. Deduct total nonadmitted amounts. Statement value at end of current period (Line 9 minus Line 0) Year to Date Prior Year Ended December SCHEDULE B - VERIFICATION Mortgage Loans Prior Year Ended Year to Date December. Book value/recorded investment excluding accrued interest, December of prior year. Cost of acquired:. Actual cost at time of acquisition. Additional investment made after acquisition. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8. Deduct amortization of premium and mortgage interest points and commitment fees 9. Total foreign exchange change in book value/recorded investment excluding accrued interest 0. Deduct current year s other than temporary impairment recognized. Book value/recorded investment excluding accrued interest at end of current period (Lines ). Total valuation allowance. Subtotal (Line plus Line ) 4. Deduct total nonadmitted amounts 5. Statement value at end of current period (Line minus Line 4). Book/adjusted carrying value, December of prior year SCHEDULE BA - VERIFICATION Other Long-Term Invested Assets. Cost of acquired:. Actual cost at time of acquisition. Additional investment made after acquisition NONE. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8. Deduct amortization of premium and depreciation 9. Total foreign exchange change in book/adjusted carrying value 0. Deduct current year s other than temporary impairment recognized. Book/adjusted carrying value at end of current period (Lines ). Deduct total nonadmitted amounts. Statement value at end of current period (Line minus Line ) Year to Date Prior Year Ended December SCHEDULE D - VERIFICATION Bonds and Stocks Prior Year Ended Year to Date December. Book/adjusted carrying value of bonds and stocks, December of prior year. Cost of bonds and stocks acquired. Accrual of discount 4. Unrealized valuation increase (decrease) 5. Total gain (loss) on disposals 6. Deduct consideration for bonds and stocks disposed of 7. Deduct amortization of premium 8. Total foreign exchange change in book/adjusted carrying value 9. Deduct current year s other than temporary impairment recognized 0. Book/adjusted carrying value at end of current period (Lines ). Deduct total nonadmitted amounts. Statement value at end of current period (Line 0 minus Line ) SI0