Statement of Additional Information Union Security Insurance Company Variable Account D Masters Variable Annuity

Transcription

1 Statement of Additional Information Variable Account D Masters Variable Annuity This Statement of Additional Information is not a prospectus. The information contained in this document should be read in conjunction with the Prospectus. To obtain a Prospectus, send a written request to c/o Hartford Life and Annuity Insurance Company Individual Annuities, P. O. Box 14293, Lexington, KY Date of Prospectus: May 1, 2018 Date of Statement of Additional Information: May 1, 2018 Table of Contents General Information Safekeeping of Assets Experts Independent Registered Public Accounting Firm Non-Participating Misstatement of Age or Sex Principal Underwriter Performance Related Information Total Return for all Sub-Accounts Yield for Sub-Accounts Money Market Sub-Accounts Additional Materials Performance Comparisons Financial Statements SA-1

2 General Information Safekeeping of Assets Union Security holds title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from Union Security's general corporate assets. Records are maintained by Hartford Securities Distribution Company, Inc. ("HSD") of all purchases and redemptions of the underlying fund shares held in each of the Sub-Accounts. Experts The statements of assets and liabilities of the individual sub-accounts which comprise Variable Account D of Union Security Insurance Company as of December 31, 2017, and the related statements of operations for each of the periods then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which is included in the Statement of Additional Information which is part of the Registration Statement. Such financial statements are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is CityPlace I, 33rd Floor, 185 Asylum Street, Hartford, Connecticut The financial statements of as of December 31, 2017 and 2016 and for each of the three years in the period ended December 31, 2017 included in this registration statement have been so included in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. Non-Participating The Contract is non-participating and we pay no dividends. Misstatement of Age or Sex If an Annuitant's age or sex was misstated on the Contract, any Contract payments or benefits will be determined using the correct age and sex. If we have overpaid Annuity Payouts, an adjustment, including interest on the amount of the overpayment, will be made to the next Annuity Payout or Payouts. If we have underpaid due to a misstatement of age or sex, we will credit the next Annuity Payout with the amount we underpaid and credit interest. Principal Underwriter HSD serves as principal underwriter for the contracts. Its principal business office is One Hartford Plaza, Hartford, CT HSD is a wholly owned subsidiary of Hartford Financial Services, LLC., which is an indirect subsidiary of Hartford Life, Inc. (the "Parent"). Hartford Life, Inc. is ultimately owned by The Hartford Financial Services Group, Inc. ("The Hartford"). HSD is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker-dealer and is a member of the Financial Industry Regulatory Authority ("FINRA"). On November 19, 2012, Union Security began paying HSD underwriting commissions for its role as principal underwriter of all contracts offered through this separate account. For the past three years, the aggregate dollar amount of underwriting commissions paid to HSD in its role as principal underwriter has been: 2017: $1,918,136; 2016: $2,434,887; and 2015: $2,475,404. Prior to November 19, 2012, Union Security paid Woodbury Financial Services, Inc. ("Woodbury") underwriting commissions for its role as principal underwriter of all contracts offered through this separate account. Performance Related Information Total Return for all Sub-Accounts When a Sub-Account advertises its standardized total return, it will usually be calculated from the date of the inception of the Sub-Account for one, five and ten year periods or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. To calculate standardized total return, Union Security uses a hypothetical initial premium payment of $1, and deducts for the mortality and expense risk charge, the highest possible contingent deferred charge, any applicable administrative charge or annual maintenance fee. The formula Union Security uses to calculate standardized total return is P(1+T)n = ERV. In this calculation, "P" represents a hypothetical initial premium payment of $1,000.00, "T" represents the average annual total return, "n" 2

3 represents the number of years and "ERV" represents the redeemable value at the end of the period. In addition to the standardized total return, the Sub-Account may advertise a non-standardized total return. These figures will usually be calculated from the date of inception of the underlying fund for one, five and ten year periods or other relevant periods. Non-standardized total return is measured in the same manner as the standardized total return described above, except that the contingent deferred sales charge and any annual maintenance fee are not deducted. Therefore, non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account. Yield for Sub-Accounts If applicable, the Sub-Accounts may advertise yield in addition to total return. At any time in the future, yields may be higher or lower than past yields and past performance is no indication of future performance. The standardized yield will be computed for periods beginning with the inception of the Sub-Account in the following manner. The net investment income per Accumulation Unit earned during a one-month period is divided by the Accumulation Unit Value on the last day of the period. The formula Union Security uses to calculate yield is: YIELD = 2[(a b/cd +1) 6 1]. In this calculation, "a" represents the net investment income earned during the period by the underlying fund, "b" represents the expenses accrued for the period, "c" represents the average daily number of Accumulation Units outstanding during the period and "d" represents the maximum offering price per Accumulation Unit on the last day of the period. Money Market Sub-Accounts At any time in the future, current and effective yields may be higher or lower than past yields and past performance is no indication of future performance. Current yield of a money market fund Sub-Account is calculated for a seven-day period or the "base period" without taking into consideration any realized or unrealized gains or losses on shares of the underlying fund. The first step in determining yield is to compute the base period return. Union Security takes a hypothetical account with a balance of one Accumulation Unit of the Sub-Account and calculates the net change in its value from the beginning of the base period to the end of the base period. Union Security then subtracts an amount equal to the total deductions for the Contract and then divides that number by the value of the account at the beginning of the base period. The result is the base period return or "BPR". Once the base period return is calculated, Union Security then multiplies it by 365/7 to compute the current yield. Current yield is calculated to the nearest hundredth of one percent. The formula for this calculation is YIELD = BPR x (365/7), where BPR = (A B)/C. "A" is equal to the net change in value of a hypothetical account with a balance of one Accumulation Unit of the Sub-Account from the beginning of the base period to the end of the base period. "B" is equal to the amount that Union Security deducts for mortality and expense risk charge, any applicable administrative charge or annual maintenance fee. "C" represents the value of the Sub-Account at the beginning of the base period. Effective yield is also calculated using the base period return. The effective yield is calculated by adding 1 to the base period return and raising that result to a power equal to 365 divided by 7 and subtracting 1 from the result. The calculation Union Security uses is: Additional Materials EFFECTIVE YIELD = [(BASE PERIOD RETURN + 1) 365/7 ] 1. We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for any alternatives. Performance Comparisons Each Sub-Account may from time to time include in advertisements the ranking of its performance figures compared with performance figures of other annuity contract's sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services. 3

4 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To The Contract Owners of Variable Account D of and the Board of Directors of Hartford Life Insurance Company Opinion on the Financial Statements and Financial Highlights We have audited the accompanying statements of assets and liabilities as of December 31, 2017, the related statements of operations for the periods then ended, the statements of changes in net assets for each of the periods presented in two years then ended, the financial highlights in Note 6 for each of the periods presented in the five years then ended, and the related notes for each of the individual Sub-Accounts comprising Variable Account D of (the Account ): American Century VP Balanced American Century VP Capital Appreciation AB VPS International Growth Portfolio Invesco V.I. Core Equity Invesco V.I. International Growth Invesco V.I. Government Money Market AB VPS Large Cap Growth Portfolio Wells Fargo VT Omega Growth Federated Managed Tail Risk II Federated for U.S. Government Securities II Federated High Income Bond II Federated Government Money II Federated Quality Bond II Federated Managed Volatility II Federated Kaufmann II Hartford Balanced HLS Hartford Total Return Bond HLS Hartford Capital Appreciation HLS Hartford Dividend and Growth HLS Hartford Global Growth HLS Hartford Disciplined Equity HLS Hartford Growth Opportunities HLS Hartford High Yield HLS Hartford International Opportunities HLS Hartford Small/Mid Cap Equity HLS Hartford MidCap Value HLS Hartford Ultrashort Bond HLS Hartford SmallCap Growth HLS Hartford Stock HLS Hartford U.S. Government Securities HLS Hartford Value HLS VY JPMorgan Emerging Markets Equity Portfolio Invesco V.I. Global Health Care Invesco V.I. Technology MFS Growth MFS High Yield Portfolio MFS Strategic Income Portfolio Neuberger Berman Short Duration Bond Portfolio Neuberger Berman Large Cap Value Portfolio Pioneer VCT Portfolio Deutsche CROCI International VIP Pioneer Select Mid Cap Growth VCT Portfolio VanEck VIP Unconstrained Emerging Markets Bond VanEck VIP Global Hard Assets Wells Fargo VT Index Asset Allocation Wells Fargo VT International Equity Wells Fargo VT Small Cap Growth Wells Fargo VT Discovery Wells Fargo VT Opportunity HIMCO VIT Index Voya Global Equity Portfolio NVIT Emerging Markets In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the individual Sub-Accounts above as of December 31, 2017, the results of their operations for the periods then ended, the changes in their net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

5 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Account s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of investments owned as of December 31, 2017, by correspondence with the fund managers; when replies were not received from fund managers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions. /s/deloitte & TOUCHE LLP Hartford, CT April 19, 2018 We have served as the auditor of the sub-accounts that comprise Variable Account D of Union Security Insurance Company since 2002.

6 VARIABLE ACCOUNT D Statements of Assets and Liabilities December 31, 2017 American Century VP Balanced American Century VP Capital Appreciation AB VPS International Growth Portfolio Invesco V.I. Core Equity Invesco V.I. International Growth Invesco V.I. Government Money Market AB VPS Large Cap Growth Portfolio Wells Fargo VT Omega Growth Federated Managed Tail Risk II Federated for U.S. Government Securities II Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Assets: Investments, at market value class 2 $ $ $ $ $ $ $ $ 4,161,891 $ $ class A 426, ,628 class D class I 682, ,585 class IA class II class INIT 5,714, ,690 class PRIM class S 1,953, ,866 10,360,798 class S1 Total investments 682, , ,027 1,953, ,866 10,360, ,628 4,161,891 5,714, ,690 Due from Sponsor Company Receivable for fund shares sold , , Other assets Total assets 682, , ,044 1,954, ,960 10,364, ,665 4,165,821 5,714, ,734 Liabilities: Due to Sponsor Company , , Payable for fund shares purchased Other liabilities Total liabilities , , Net assets: For contract liabilities $ 682,077 $ 133,585 $ 426,028 $ 1,953,929 $ 682,866 $ 10,360,799 $ 965,629 $ 4,161,891 $ 5,714,115 $ 502,690 Contract Liabilities: class 2 $ $ $ $ $ $ $ $ 4,161,891 $ $

7 class A 426, ,629 class D class I 682, ,585 class IA class II class INIT 5,714, ,690 class PRIM class S 1,953, ,866 10,360,799 class S1 Total contract liabilities $ 682,077 $ 133,585 $ 426,028 $ 1,953,929 $ 682,866 $ 10,360,799 $ 965,629 $ 4,161,891 $ 5,714,115 $ 502,690 Shares: class 2 149,118 class A 18,403 17,139 class D class I 90,581 8,888 class IA class II class INIT 1,088,403 46,849 class PRIM class S 53,212 17,119 10,360,798 class S1 Total shares 90,581 8,888 18,403 53,212 17,119 10,360,798 17, ,118 1,088,403 46,849 Cost $ 615,956 $ 113,679 $ 405,989 $ 1,556,295 $ 327,926 $ 10,360,798 $ 672,105 $ 3,220,138 $ 6,229,995 $ 522,093 Deferred contracts in the accumulation period: Units owned by participants # 17,469 3,164 34,418 96,133 30, ,307 14, , ,882 28,802 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 638,922 $ 133,585 $ 377,133 $ 1,904,442 $ 661,755 $ 9,427,157 $ 860,026 $ 3,790,977 $ 5,701,121 $ 502,287 Contracts in payout (annuitization) period: Units owned by participants # 1,180 4,462 2, ,558 1,836 14,321 1, Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 43,155 $ $ 48,895 $ 49,487 $ 21,111 $ 933,642 $ 105,603 $ 370,914 $ 12,994 $ 403 # Rounded units/unit fair values

8 * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. The accompanying notes are an integral part of these financial statements. VARIABLE ACCOUNT D Statements of Assets and Liabilities (continued) December 31, 2017 Federated High Income Bond II Federated Government Money II Federated Quality Bond II Federated Managed Volatility II Federated Kaufmann II Hartford Balanced HLS Hartford Total Return Bond HLS Hartford Capital Appreciation HLS Hartford Dividend and Growth HLS Hartford Global Growth HLS Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Assets: Investments, at market value class 2 $ $ $ $ $ $ $ $ $ $ class A class D class I class IA 61,319,335 22,801,103 14,588,486 13,851,561 43,586,152 class II class INIT 1,977,674 1,096,047 7,185,681 6,720,153 class PRIM class S class S1 738,185 Total investments 1,977, ,185 1,096,047 7,185,681 6,720,153 61,319,335 22,801,103 14,588,486 13,851,561 43,586,152 Due from Sponsor Company Receivable for fund shares sold ,329 10,719 19,557 1,247 22,325 Other assets Total assets 1,977, ,265 1,096,164 7,186,443 6,720,864 61,331,664 22,811,823 14,608,043 13,852,808 43,608,477 Liabilities: Due to Sponsor Company ,329 10,719 19,557 1,247 22,325 Payable for fund shares purchased Other liabilities Total liabilities ,330 10,719 19,558 1,247 22,328

9 Net assets: For contract liabilities $ 1,977,673 $ 738,186 $ 1,096,046 $ 7,185,682 $ 6,720,153 $ 61,319,334 $ 22,801,104 $ 14,588,485 $ 13,851,561 $ 43,586,149 Contract Liabilities: class 2 $ $ $ $ $ $ $ $ $ $ class A class D class I class IA 61,319,334 22,801,104 14,588,485 13,851,561 43,586,149 class II class INIT 1,977,673 1,096,046 7,185,682 6,720,153 class PRIM class S class S1 738,186 Total contract liabilities $ 1,977,673 $ 738,186 $ 1,096,046 $ 7,185,682 $ 6,720,153 $ 61,319,334 $ 22,801,104 $ 14,588,485 $ 13,851,561 $ 43,586,149 Shares: class 2 class A class D class I class IA 1,976,768 2,014, , ,353 1,562,788 class II class INIT 289,982 99, , ,739 class PRIM class S class S1 738,185 Total shares 289, ,185 99, , ,739 1,976,768 2,014, , ,353 1,562,788 Cost $ 2,019,161 $ 738,185 $ 1,090,154 $ 5,991,142 $ 5,176,437 $ 45,438,289 $ 23,328,041 $ 13,297,524 $ 13,346,537 $ 25,604,804 Deferred contracts in the accumulation period: Units owned by participants # 77,369 68,827 58, , ,860 8,121,071 5,340,526 3,569,290 4,143, ,624 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 1,975,631 $ 738,186 $ 1,096,046 $ 7,167,205 $ 6,712,826 $ 59,713,396 $ 22,512,303 $ 14,569,142 $ 13,789,437 $ 42,691,686

10 Contracts in payout (annuitization) period: Units owned by participants # ,996 76,794 4,700 18,705 17,648 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 2,042 $ $ $ 18,477 $ 7,327 $ 1,605,938 $ 288,801 $ 19,343 $ 62,124 $ 894,463 # Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. The accompanying notes are an integral part of these financial statements. VARIABLE ACCOUNT D Statements of Assets and Liabilities (continued) December 31, 2017 Hartford Disciplined Equity HLS Hartford Growth Opportunities HLS Hartford High Yield HLS Hartford International Opportunities HLS Hartford Small/Mid Cap Equity HLS Hartford MidCap Value HLS Hartford Ultrashort Bond HLS Hartford SmallCap Growth HLS Hartford Stock HLS Hartford U.S. Government Securities HLS Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Assets: Investments, at market value class 2 $ $ $ $ $ $ $ $ $ $ class A class D class I class IA 37,036, ,249,617 8,766,982 25,782,386 11,475,927 20,796,574 8,460,926 47,458,107 4,213,015 13,860,189 class II class INIT class PRIM class S class S1 Total investments 37,036, ,249,617 8,766,982 25,782,386 11,475,927 20,796,574 8,460,926 47,458,107 4,213,015 13,860,189 Due from Sponsor Company Receivable for fund shares sold 13,061 74,818 3,126 15,658 1,509 2,884 3,806 7, ,045 Other assets 3 2 Total assets 37,049, ,324,438 8,770,110 25,798,044 11,477,436 20,799,458 8,464,732 47,465,997 4,213,428 13,865,234

11 Liabilities: Due to Sponsor Company 13,061 74,818 3,126 15,658 1,509 2,884 3,806 7, ,045 Payable for fund shares purchased Other liabilities Total liabilities 13,063 74,818 3,126 15,658 1,509 2,884 3,809 7, ,045 Net assets: For contract liabilities $ 37,036,096 $ 205,249,620 $ 8,766,984 $ 25,782,386 $ 11,475,927 $ 20,796,574 $ 8,460,923 $ 47,458,107 $ 4,213,014 $ 13,860,189 Contract Liabilities: class 2 $ $ $ $ $ $ $ $ $ $ class A class D class I class IA 37,036, ,249,620 8,766,984 25,782,386 11,475,927 20,796,574 8,460,923 47,458,107 4,213,014 13,860,189 class II class INIT class PRIM class S class S1 Total contract liabilities $ 37,036,096 $ 205,249,620 $ 8,766,984 $ 25,782,386 $ 11,475,927 $ 20,796,574 $ 8,460,923 $ 47,458,107 $ 4,213,014 $ 13,860,189 Shares: class 2 class A class D class I class IA 2,400,266 5,342,260 1,069,144 1,476,654 1,302,602 1,650, ,046 1,477,065 52,947 1,357,511 class II class INIT class PRIM class S class S1 Total shares 2,400,266 5,342,260 1,069,144 1,476,654 1,302,602 1,650, ,046 1,477,065 52,947 1,357,511 Cost $ 31,489,368 $ 143,577,947 $ 9,489,340 $ 19,478,741 $ 12,131,140 $ 17,371,370 $ 8,416,282 $ 29,465,656 $ 2,377,023 $ 14,295,376

12 Deferred contracts in the accumulation period: Units owned by participants # 700,743 11,725, ,635 7,752, , ,427 3,921, ,828 1,439, ,066 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 36,287,196 $ 200,812,007 $ 8,651,992 $ 25,426,891 $ 11,368,459 $ 20,370,230 $ 8,285,509 $ 47,020,160 $ 4,188,535 $ 13,345,565 Contracts in payout (annuitization) period: Units owned by participants # 13, ,433 4, ,667 3,560 18,091 26,705 6,196 8,242 19,651 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 748,900 $ 4,437,613 $ 114,992 $ 355,495 $ 107,468 $ 426,344 $ 175,414 $ 437,947 $ 24,479 $ 514,624 # Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. The accompanying notes are an integral part of these financial statements. VARIABLE ACCOUNT D Statements of Assets and Liabilities (continued) December 31, 2017 Hartford Value HLS VY JPMorgan Emerging Markets Equity Portfolio Invesco V.I. Global Health Care Invesco V.I. Technology MFS Growth MFS High Yield Portfolio MFS Strategic Income Portfolio Neuberger Berman Short Duration Bond Portfolio Neuberger Berman Large Cap Value Portfolio Pioneer VCT Portfolio Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Assets: Investments, at market value class 2 $ $ $ $ $ $ $ $ $ $ class A class D class I 919, , , ,546 class IA 22,525,577 class II 2,515, , ,697 class INIT

13 class PRIM class S 787, ,114 class S1 Total investments 22,525, , , ,114 2,515, , , , , ,546 Due from Sponsor Company Receivable for fund shares sold 9, Other assets Total assets 22,535, , , ,386 2,516, , , , , ,569 Liabilities: Due to Sponsor Company 9, Payable for fund shares purchased Other liabilities 1 Total liabilities 9, Net assets: For contract liabilities $ 22,525,578 $ 919,470 $ 787,345 $ 641,114 $ 2,515,954 $ 701,138 $ 199,697 $ 397,558 $ 518,887 $ 606,546 Contract Liabilities: class 2 $ $ $ $ $ $ $ $ $ $ class A class D class I 919, , , ,546 class IA 22,525,578 class II 2,515, , ,697 class INIT class PRIM class S 787, ,114 class S1 Total contract liabilities $ 22,525,578 $ 919,470 $ 787,345 $ 641,114 $ 2,515,954 $ 701,138 $ 199,697 $ 397,558 $ 518,887 $ 606,546 Shares: class 2 class A class D

14 class I 42,726 38,007 31,052 33,163 class IA 1,403,463 class II 51, ,514 20,294 class INIT class PRIM class S 29,779 27,911 class S1 Total shares 1,403,463 42,726 29,779 27,911 51, ,514 20,294 38,007 31,052 33,163 Cost $ 16,515,683 $ 738,665 $ 682,954 $ 471,514 $ 1,296,916 $ 736,999 $ 204,253 $ 416,181 $ 447,279 $ 646,074 Deferred contracts in the accumulation period: Units owned by participants # 8,760,575 37,402 15,927 16,835 71,564 56,537 16,766 24,738 14,377 24,057 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 22,382,148 $ 893,430 $ 776,895 $ 520,627 $ 2,395,836 $ 678,734 $ 197,991 $ 394,820 $ 516,754 $ 604,199 Contracts in payout (annuitization) period: Units owned by participants # 55,708 1, ,896 2,507 1, Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 143,430 $ 26,040 $ 10,450 $ 120,487 $ 120,118 $ 22,404 $ 1,706 $ 2,738 $ 2,133 $ 2,347 # Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. The accompanying notes are an integral part of these financial statements. VARIABLE ACCOUNT D Statements of Assets and Liabilities (continued) December 31, 2017

15 Deutsche CROCI International VIP Pioneer Select Mid Cap Growth VCT Portfolio VanEck VIP Unconstrained Emerging Markets Bond VanEck VIP Global Hard Assets Wells Fargo VT Index Asset Allocation Wells Fargo VT International Equity Wells Fargo VT Small Cap Growth Wells Fargo VT Discovery Wells Fargo VT Opportunity HIMCO VIT Index Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Assets: Investments, at market value class 2 $ $ $ $ $ 1,656,817 $ 123,069 $ 1,518,880 $ 535,703 $ 127,626 $ class A 468,269 class D class I 1,492,422 class IA 43,292,299 class II 17, ,300 class INIT class PRIM class S class S1 Total investments 468,269 1,492,422 17, ,300 1,656, ,069 1,518, , ,626 43,292,299 Due from Sponsor Company Receivable for fund shares sold 1, ,128 Other assets 1 1 Total assets 470,085 1,492,634 17, ,348 1,657, ,083 1,519, , ,642 43,303,428 Liabilities: Due to Sponsor Company 1, ,128 Payable for fund shares purchased Other liabilities Total liabilities 1, ,128 Net assets: For contract liabilities $ 468,269 $ 1,492,422 $ 17,669 $ 348,300 $ 1,656,817 $ 123,069 $ 1,518,880 $ 535,703 $ 127,627 $ 43,292,300 Contract Liabilities: class 2 $ $ $ $ $ 1,656,817 $ 123,069 $ 1,518,880 $ 535,703 $ 127,627 $ class A 468,269 class D class I 1,492,422 class IA 43,292,300 class II 17, ,300

16 class INIT class PRIM class S class S1 Total contract liabilities $ 468,269 $ 1,492,422 $ 17,669 $ 348,300 $ 1,656,817 $ 123,069 $ 1,518,880 $ 535,703 $ 127,627 $ 43,292,300 Shares: class 2 81,018 22, ,202 16,878 4,703 class A 63,797 class D class I 49,369 class IA 927,030 class II 1,985 14,678 class INIT class PRIM class S class S1 Total shares 63,797 49,369 1,985 14,678 81,018 22, ,202 16,878 4, ,030 Cost $ 491,112 $ 1,185,804 $ 20,668 $ 339,310 $ 1,131,674 $ 108,998 $ 1,145,548 $ 429,108 $ 105,111 $ 35,476,166 Deferred contracts in the accumulation period: Units owned by participants # 24,149 30, ,994 75,147 7,618 42,700 6,948 5,643 1,059,178 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 454,637 $ 1,467,491 $ 14,157 $ 113,845 $ 1,634,166 $ 123,069 $ 1,477,586 $ 463,862 $ 117,416 $ 42,382,228 Contracts in payout (annuitization) period: Units owned by participants # ,226 1,042 1,193 1, ,461 Minimum unit fair value #* $ $ $ $ $ $ $ $ $ $ Maximum unit fair value #* $ $ $ $ $ $ $ $ $ $ Contract liability $ 13,632 $ 24,931 $ 3,512 $ 234,455 $ 22,651 $ $ 41,294 $ 71,841 $ 10,211 $ 910,072 # Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. The accompanying notes are an integral part of these financial statements.

17 VARIABLE ACCOUNT D Statements of Assets and Liabilities (concluded) December 31, 2017 VOYA Global Equity Portfolio Sub-Account NVIT Emerging Markets Sub-Account Assets: Investments, at market value class 2 $ $ class A class D 370,609 class I class IA class II class INIT class PRIM 283,827 class S class S1 Total investments 283, ,609 Due from Sponsor Company Receivable for fund shares sold Other assets Total assets 283, ,659 Liabilities: Due to Sponsor Company Payable for fund shares purchased Other liabilities Total liabilities 11 50

18 Net assets: For contract liabilities $ 283,827 $ 370,609 Contract Liabilities: class 2 $ $ class A class D 370,609 class I class IA class II class INIT class PRIM 283,827 class S class S1 Total contract liabilities $ 283,827 $ 370,609 Shares: class 2 class A class D 27,493 class I class IA class II class INIT class PRIM 25,524 class S class S1 Total shares 25,524 27,493 Cost $ 251,528 $ 284,584 Deferred contracts in the accumulation period: Units owned by participants # 17,241 11,932 Minimum unit fair value #* $ $ Maximum unit fair value #* $ $

19 Contract liability $ 207,677 $ 163,867 Contracts in payout (annuitization) period: Units owned by participants # 6,322 15,055 Minimum unit fair value #* $ $ Maximum unit fair value #* $ $ Contract liability $ 76,150 $ 206,742 # Rounded units/unit fair values * For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows. The accompanying notes are an integral part of these financial statements.

20 VARIABLE ACCOUNT D Statements of Operations For the Periods Ended December 31, 2017 American Century VP Balanced American Century VP Capital Appreciation AB VPS International Growth Portfolio Invesco V.I. Core Equity Invesco V.I. International Growth Invesco V.I. Government Money Market AB VPS Large Cap Growth Portfolio Wells Fargo VT Omega Growth Federated Managed Tail Risk II Federated for U.S. Government Securities II Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Investment income: Dividends $ 10,239 $ $ 3,810 $ 20,358 $ 9,350 $ 57,621 $ $ 474 $ 98,530 $ 14,195 Expenses: Administrative charges (987) (5,775) (434) Mortality and expense risk and other charges (3,016) (629) (1,423) (26,250) (8,228) (142,070) (3,594) (56,414) (69,534) (6,100) Total expenses (3,016) (629) (1,423) (26,250) (9,215) (142,070) (3,594) (56,414) (75,309) (6,534) Net investment income (loss) 7,223 (629) 2,387 (5,892) 135 (84,449) (3,594) (55,940) 23,221 7,661 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) on security transactions 7,519 14,625 (7,193) 64,838 40,584 34, ,684 (156,645) (17,913) Net realized gain distributions 25,200 16, ,972 44, ,655 Change in unrealized appreciation (depreciation) during the period 44,898 (1,877) 91,550 63,215 85, , , ,885 17,477 Net gain (loss) on investments 77,617 28,848 84, , , ,906 1,182, ,240 (436) Net increase (decrease) in net assets resulting from operations $ 84,840 $ 28,219 $ 86,744 $ 224,133 $ 125,814 $ (84,449) $ 215,312 $ 1,126,090 $ 533,461 $ 7,225 The accompanying notes are an integral part of these financial statements.

21 VARIABLE ACCOUNT D Statements of Operations (continued) For the Periods Ended December 31, 2017 Federated High Income Bond II Federated Government Money II Federated Quality Bond II Federated Managed Volatility II Federated Kaufmann II Hartford Balanced HLS Hartford Total Return Bond HLS Hartford Capital Appreciation HLS Hartford Dividend and Growth HLS Hartford Global Growth HLS Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Investment income: Dividends $ 146,816 $ 2,310 $ 36,333 $ 288,644 $ $ 1,385,848 $ 687,022 $ 155,857 $ 217,827 $ 214,177 Expenses: Administrative charges (1,761) (750) (1,111) (7,026) (60,728) (23,670) (973) (42,739) Mortality and expense risk and other charges (22,764) (8,958) (13,331) (84,854) (84,231) (770,005) (305,379) (198,052) (188,214) (534,742) Total expenses (24,525) (9,708) (14,442) (91,880) (84,231) (830,733) (329,049) (198,052) (189,187) (577,481) Net investment income (loss) 122,291 (7,398) 21, ,764 (84,231) 555, ,973 (42,195) 28,640 (363,304) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) on security transactions (6,814) (88) 122, ,615 1,995,114 (89,965) 120,728 21,989 2,576,024 Net realized gain distributions 682, , ,261 1,947,892 Change in unrealized appreciation (depreciation) during the period 7,952 7, , ,867 5,394, ,713 1,771,315 1,120,558 7,027,344 Net gain (loss) on investments 1,138 7, ,885 1,620,721 7,390, ,748 2,649,390 2,085,808 11,551,260 Net increase (decrease) in net assets resulting from operations $ 123,429 $ (7,398) $ 29,535 $ 1,094,649 $ 1,536,490 $ 7,945,180 $ 851,721 $ 2,607,195 $ 2,114,448 $ 11,187,956 The accompanying notes are an integral part of these financial statements.

22 VARIABLE ACCOUNT D Statements of Operations (continued) For the Periods Ended December 31, 2017 Hartford Disciplined Equity HLS Hartford Growth Opportunities HLS Hartford High Yield HLS Hartford International Opportunities HLS Hartford Small/ Mid Cap Equity HLS Hartford MidCap Value HLS Hartford Ultrashort Bond HLS Hartford SmallCap Growth HLS Hartford Stock HLS Hartford U.S. Government Securities HLS Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Investment income: Dividends $ 328,443 $ $ 546,279 $ 358,233 $ 100,643 $ 113,332 $ 66,594 $ 19,088 $ 72,539 $ 308,820 Expenses: Administrative charges (36,371) (198,841) (9,150) (11,871) (7,888) (46,715) (14,506) Mortality and expense risk and other charges (462,578) (2,490,446) (117,325) (350,892) (155,879) (287,871) (101,872) (592,540) (61,479) (186,400) Total expenses (498,949) (2,689,287) (126,475) (350,892) (167,750) (287,871) (109,760) (639,255) (61,479) (200,906) Net investment income (loss) (170,506) (2,689,287) 419,804 7,341 (67,107) (174,539) (43,166) (620,167) 11, ,914 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) on security transactions 814,498 5,709,515 (118,819) 716,851 (297,578) 414,690 8,336 2,201, ,589 (39,514) Net realized gain distributions 3,837,161 2,491, ,838 1,359,202 Change in unrealized appreciation (depreciation) during the period 2,193,857 43,305, ,053 4,562,060 1,403, ,730 11,809 6,290, ,922 (78,040) Net gain (loss) on investments 6,845,516 51,506, ,234 5,278,911 1,475,851 2,490,622 20,145 8,492, ,511 (117,554) Net increase (decrease) in net assets resulting from operations $ 6,675,010 $ 48,817,300 $ 545,038 $ 5,286,252 $ 1,408,744 $ 2,316,083 $ (23,021) $ 7,872,250 $ 694,571 $ (9,640) The accompanying notes are an integral part of these financial statements.

23 VARIABLE ACCOUNT D Statements of Operations (continued) For the Periods Ended December 31, 2017 Hartford Value HLS VY JPMorgan Emerging Markets Equity Portfolio Invesco V.I. Global Health Care Invesco V.I. Technology MFS Growth MFS High Yield Portfolio MFS Strategic Income Portfolio Neuberger Berman Short Duration Bond Portfolio Neuberger Berman Large Cap Value Portfolio Pioneer VCT Portfolio Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Investment income: Dividends $ 381,508 $ 5,442 $ 2,871 $ $ 2,359 $ 45,522 $ 12,147 $ 5,971 $ 3,564 $ 6,610 Expenses: Administrative charges (2,309) Mortality and expense risk and other charges (316,707) (3,702) (3,516) (2,401) (22,482) (8,220) (1,225) (1,543) (2,861) (2,481) Total expenses (316,707) (3,702) (3,516) (2,401) (24,791) (8,220) (1,225) (1,543) (2,861) (2,481) Net investment income (loss) 64,801 1,740 (645) (2,401) (22,432) 37,302 10,922 4, ,129 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) on security transactions 1,102,326 11,321 7,926 38, ,234 (1,936) (2,886) (668) 30,848 (280) Net realized gain distributions 1,613,598 39,881 27,550 89,253 16,678 77,548 Change in unrealized appreciation (depreciation) during the period 176, ,643 62,158 88, ,808 3,774 7,998 (2,701) 28,392 24,607 Net gain (loss) on investments 2,892, , , , ,295 1,838 5,112 (3,369) 75, ,875 Net increase (decrease) in net assets resulting from operations $ 2,957,561 $ 282,704 $ 109,320 $ 152,057 $ 579,863 $ 39,140 $ 16,034 $ 1,059 $ 76,621 $ 106,004 The accompanying notes are an integral part of these financial statements.

24 VARIABLE ACCOUNT D Statements of Operations (continued) For the Periods Ended December 31, 2017 Deutsche CROCI International VIP Pioneer Select Mid Cap Growth VCT Portfolio VanEck VIP Unconstrained Emerging Markets Bond VanEck VIP Global Hard Assets Wells Fargo VT Index Asset Allocation Wells Fargo VT International Equity Wells Fargo VT Small Cap Growth Wells Fargo VT Discovery Wells Fargo VT Opportunity HIMCO VIT Index Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Investment income: Dividends $ 36,211 $ 956 $ 780 $ $ 12,712 $ 3,093 $ $ $ 823 $ 729,610 Expenses: Administrative charges (758) (2,577) (2,249) (37,761) Mortality and expense risk and other charges (6,314) (5,715) (89) (2,589) (21,477) (1,581) (18,740) (1,916) (1,699) (511,415) Total expenses (7,072) (5,715) (89) (2,589) (24,054) (1,581) (20,989) (1,916) (1,699) (549,176) Net investment income (loss) 29,139 (4,759) 691 (2,589) (11,342) 1,512 (20,989) (1,916) (876) 180,434 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) on security transactions (11,988) 15,735 (4,595) (29,418) 87,090 1,035 43,247 12,900 3, ,946 Net realized gain distributions 15,261 73,094 45,116 20,168 9,898 2,325,139 Change in unrealized appreciation (depreciation) during the period 76, ,346 6,528 (16,063) 25,811 20, ,743 73,759 8,695 4,292,913 Net gain (loss) on investments 64, ,342 1,933 (45,481) 185,995 21, , ,827 21,632 7,332,998 Net increase (decrease) in net assets resulting from operations $ 93,606 $ 334,583 $ 2,624 $ (48,070) $ 174,653 $ 22,788 $ 319,117 $ 104,911 $ 20,756 $ 7,513,432 The accompanying notes are an integral part of these financial statements.

25 VARIABLE ACCOUNT D Statements of Operations (concluded) For the Periods Ended December 31, 2017 VOYA Global Equity Portfolio Sub-Account NVIT Emerging Markets Sub-Account Investment income: Dividends $ 5,014 $ 3,122 Expenses: Administrative charges Mortality and expense risk and other charges (1,159) (1,391) Total expenses (1,159) (1,391) Net investment income (loss) 3,855 1,731 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) on security transactions 8,603 2,752 Net realized gain distributions Change in unrealized appreciation (depreciation) during the period 39,078 96,383 Net gain (loss) on investments 47,681 99,135 Net increase (decrease) in net assets resulting from operations $ 51,536 $ 100,866 The accompanying notes are an integral part of these financial statements.

26 VARIABLE ACCOUNT D Statements of Changes in Net Assets December 31, 2017 American Century VP Balanced American Century VP Capital Appreciation AB VPS International Growth Portfolio Invesco V.I. Core Equity Invesco V.I. International Growth Invesco V.I. Government Money Market AB VPS Large Cap Growth Portfolio Wells Fargo VT Omega Growth Federated Managed Tail Risk II Federated for U.S. Government Securities II Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Operations: Net investment income (loss) $ 7,223 $ (629) $ 2,387 $ (5,892) $ 135 $ (84,449) $ (3,594) $ (55,940) $ 23,221 $ 7,661 Net realized gain (loss) on security transactions 7,519 14,625 (7,193) 64,838 40,584 34, ,684 (156,645) (17,913) Net realized gain distributions 25,200 16, ,972 44, ,655 Change in unrealized appreciation (depreciation) during the period 44,898 (1,877) 91,550 63,215 85, , , ,885 17,477 Net increase (decrease) in net assets resulting from operations 84,840 28,219 86, , ,814 (84,449) 215,312 1,126, ,461 7,225 Unit transactions: Purchases , , , ,757 Net transfers (5,248) (7,656) 115,254 (77,270) (6,179) 1,452, ,516 (139,997) (97,214) (58,128) Net interfund transfers due to corporate actions Surrenders for benefit payments and fees (73,459) (23,696) (7,830) (59,609) (33,027) (2,035,769) (85,190) (226,147) (483,860) (92,511) Other transactions 8 17 (68) 38 3 Death benefits (52,590) (28,892) (139,245) (212) (400,541) (284,823) (346,504) (351,635) Net annuity transactions (3,496) (3,402) (23,683) (10,728) 43,131 (7,521) (57,632) (1,035) (38) Net increase (decrease) in net assets resulting from unit transactions (82,203) (83,942) 75,350 (275,186) (49,711) (925,724) 46,005 (707,377) (928,525) (465,552) Net increase (decrease) in net assets 2,637 (55,723) 162,094 (51,053) 76,103 (1,010,173) 261, ,713 (395,064) (458,327) Net assets: Beginning of period 679, , ,934 2,004, ,763 11,370, ,312 3,743,178 6,109, ,017 End of period $ 682,077 $ 133,585 $ 426,028 $ 1,953,929 $ 682,866 $ 10,360,799 $ 965,629 $ 4,161,891 $ 5,714,115 $ 502,690 The accompanying notes are an integral part of these financial statements.

27 VARIABLE ACCOUNT D Statements of Changes in Net Assets (continued) December 31, 2017 Federated High Income Bond II Federated Government Money II Federated Quality Bond II Federated Managed Volatility II Federated Kaufmann II Hartford Balanced HLS Hartford Total Return Bond HLS Hartford Capital Appreciation HLS Hartford Dividend and Growth HLS Hartford Global Growth HLS Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Operations: Net investment income (loss) $ 122,291 $ (7,398) $ 21,891 $ 196,764 $ (84,231) $ 555,115 $ 357,973 $ (42,195) $ 28,640 $ (363,304) Net realized gain (loss) on security transactions (6,814) (88) 122, ,615 1,995,114 (89,965) 120,728 21,989 2,576,024 Net realized gain distributions 682, , ,261 1,947,892 Change in unrealized appreciation (depreciation) during the period 7,952 7, , ,867 5,394, ,713 1,771,315 1,120,558 7,027,344 Net increase (decrease) in net assets resulting from operations 123,429 (7,398) 29,535 1,094,649 1,536,490 7,945, ,721 2,607,195 2,114,448 11,187,956 Unit transactions: Purchases 11,762 13, , ,960 76, , ,014 Net transfers (115,261) (68,466) 16,139 35,114 85, ,439 85,662 (43,737) (304,651) (610,109) Net interfund transfers due to corporate actions Surrenders for benefit payments and fees (180,686) (46,082) (33,444) (658,239) (453,627) (6,457,516) (1,912,733) (1,316,852) (1,138,161) (4,185,980) Other transactions (44) (13) (10) (70) 20 (93) Death benefits (136,333) (13,768) (9,064) (419,220) (478,628) (1,317,038) (661,543) (202,448) (336,325) (1,175,159) Net annuity transactions (254) (1,622) (553) (249,893) (5,577) 2,816 (4,579) (126,886) Net increase (decrease) in net assets resulting from unit transactions (432,524) (128,316) (26,367) (1,032,106) (833,600) (7,267,035) (2,251,241) (1,483,425) (1,632,961) (5,757,213) Net increase (decrease) in net assets (309,095) (135,714) 3,168 62, , ,145 (1,399,520) 1,123, ,487 5,430,743 Net assets: Beginning of period 2,286, ,900 1,092,878 7,123,139 6,017,263 60,641,189 24,200,624 13,464,715 13,370,074 38,155,406 End of period $ 1,977,673 $ 738,186 $ 1,096,046 $ 7,185,682 $ 6,720,153 $ 61,319,334 $ 22,801,104 $ 14,588,485 $ 13,851,561 $ 43,586,149 The accompanying notes are an integral part of these financial statements.

28 VARIABLE ACCOUNT D Statements of Changes in Net Assets (continued) December 31, 2017 Hartford Disciplined Equity HLS Hartford Growth Opportunities HLS Hartford High Yield HLS Hartford International Opportunities HLS Hartford Small/ Mid Cap Equity HLS Hartford MidCap Value HLS Hartford Ultrashort Bond HLS Hartford SmallCap Growth HLS Hartford Stock HLS Hartford U.S. Government Securities HLS Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Operations: Net investment income (loss) $ (170,506) $ (2,689,287) $ 419,804 $ 7,341 $ (67,107) $ (174,539) $ (43,166) $ (620,167) $ 11,060 $ 107,914 Net realized gain (loss) on security transactions 814,498 5,709,515 (118,819) 716,851 (297,578) 414,690 8,336 2,201, ,589 (39,514) Net realized gain distributions 3,837,161 2,491, ,838 1,359,202 Change in unrealized appreciation (depreciation) during the period 2,193,857 43,305, ,053 4,562,060 1,403, ,730 11,809 6,290, ,922 (78,040) Net increase (decrease) in net assets resulting from operations 6,675,010 48,817, ,038 5,286,252 1,408,744 2,316,083 (23,021) 7,872, ,571 (9,640) Unit transactions: Purchases 138,365 1,046,170 64, , , ,513 95, ,550 92, ,746 Net transfers (572,166) (2,711,829) (187,355) (172,275) (553,093) 62, ,205 (423,693) (119,014) 561,186 Net interfund transfers due to corporate actions Surrenders for benefit payments and fees (3,515,267) (17,118,587) (763,111) (2,785,386) (1,306,854) (1,987,258) (663,533) (5,194,535) (462,521) (1,363,840) Other transactions (123) 20 (129) (151) 90 (3) Death benefits (624,816) (2,927,496) (254,291) (568,671) (291,709) (488,142) (389,553) (582,548) (116,098) (530,242) Net annuity transactions (173,995) (77,979) (2,471) (12,009) 75,345 (44,731) (44,337) 13,141 (1,515) 52,080 Net increase (decrease) in net assets resulting from unit transactions (4,748,002) (21,789,701) (1,142,607) (3,334,332) (1,966,649) (2,353,254) (822,865) (5,901,057) (606,848) (1,168,070) Net increase (decrease) in net assets 1,927,008 27,027,599 (597,569) 1,951,920 (557,905) (37,171) (845,886) 1,971,193 87,723 (1,177,710) Net assets: Beginning of period 35,109, ,222,021 9,364,553 23,830,466 12,033,832 20,833,745 9,306,809 45,486,914 4,125,291 15,037,899 End of period $ 37,036,096 $ 205,249,620 $ 8,766,984 $ 25,782,386 $ 11,475,927 $ 20,796,574 8,460,923 47,458,107 4,213,014 13,860,189 The accompanying notes are an integral part of these financial statements.