26-2583-3.aa

Independent Auditor's Report

Audit Committee of
The Global Atlantic Financial Group LLC:

Opinions

We have audited the statutory-basis financial statements of Forethought Life Insurance Company (the "Company"), which comprise the statutory-basis statements of admitted assets, liabilities, capital and surplus as of December 31, 2025 and December 31, 2024, and the related statutory-basis statements of operations, changes in capital and surplus, and cash flows for the years ended December 31, 2025, 2024, and 2023, and the related notes to the statutory-basis financial statements (collectively referred to as the "statutory-basis financial statements").

Unmodified Opinion on Statutory-Basis of Accounting

In our opinion, the accompanying statutory-basis financial statements present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2025 and December 31, 2024, and the results of its operations and its cash flows for the years ended December 31, 2025, 2024, and 2023, in accordance with the accounting practices prescribed or permitted by the Insurance Department of the State of Indiana described in Note 2.

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America section of our report, the statutory-basis financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2025 and December 31, 2024, or the results of its operations or its cash flows for the years ended December 31, 2025, 2024, and 2023.

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statutory-Basis Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

As described in Note 2 to the statutory-basis financial statements, the statutory-basis financial statements are prepared by the Company using the accounting practices prescribed or permitted by the Insurance Department of the State of Indiana, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Insurance Department of the State of Indiana. The effects on the statutory-basis financial statements of the variances between the statutory-basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Statutory-Basis Financial Statements

Management is responsible for the preparation and fair presentation of the statutory-basis financial statements in accordance with the accounting practices prescribed or permitted by the Insurance Department of the State of Indiana. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of statutory-basis financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the statutory-basis financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the statutory-basis financial statements are issued.

Auditor's Responsibilities for the Audit of the Statutory-Basis Financial Statements

Our objectives are to obtain reasonable assurance about whether the statutory-basis financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the statutory-basis financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the statutory-basis financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the statutory-basis financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the statutory-basis financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Report on Supplemental Schedules

Our 2025 audit was conducted for the purpose of forming an opinion on the 2025 statutory-basis financial statements as a whole. The supplemental schedule of selected statutory-basis financial data, the supplemental schedule of investment risk interrogatories, the supplemental summary investment schedule, and the supplemental schedule of reinsurance disclosures as of and for the year ended December 31, 2025, are presented for purposes of additional analysis and are not a required part of the 2025 statutory-basis financial statements. These schedules are the responsibility of the Company's management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. Such schedules have been subjected to the auditing procedures applied in our audit of the 2025 statutory-basis financial statements and certain additional procedures, including comparing and reconciling such schedules directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to the statutory-basis financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, such schedules are fairly stated in all material respects in relation to the 2025 statutory-basis financial statements as a whole.

March 20, 2026

Forethought Life Insurance Company

(a wholly-owned subsidiary of Commonwealth Annuity and Life Insurance Company)
Statutory Statements of Admitted Assets,
Liabilities, Capital and Surplus
As of December 31, 2025 and 2024

(Dollars in thousands, except share amounts)

Assets	Notes		2025			2024
Bonds		4, 5	$	35,916,031		$	28,029,298
Unaffiliated common stock		4		110,247			89,960
Preferred stocks		4		191,152			65,283
Mortgage loans		4		21,920,396			21,030,120
Real Estate		4		26,627			24,687
Cash, cash equivalents, and short-term investments		4		1,596,225			1,611,126
Derivatives		4		1,769,651			1,066,195
Policy Loans				2,822			3,160
Other invested assets		4		4,820,920			2,794,487
Subtotal, cash and invested assets				66,354,071			54,714,316
Deferred and uncollected premiums		9		49,160			32,281
Investment income due and accrued				499,271			398,759
Current federal and foreign income tax recoverable		7		59,587			374,175
Net deferred tax asset		7		525,771			457,772
Reinsurance recoverable		8		928,268			858,609
Other assets		15		194,248			150,781
Separate account assets		16		4,405,265			2,960,751
Total admitted assets			$	73,015,641		$	59,947,444
Liabilities
Aggregate reserve for life and accident and health policies and contracts		10		37,751,961			34,302,012
Deposit funds and other contract liabilities		6, 10		5,908,674			3,307,514
Policy and contract claims				10,296			7,800
Funds held under reinsurance treaties		8		15,937,357			12,950,256
Transfers to separate accounts due or accrued				(404,170	)		(81,979	)
Asset valuation reserve				626,694			413,897
Reinsurance payable		8		962,513			749,946
Other liabilities		15		3,188,837			1,314,965
Separate account liabilities		16		4,405,265			2,960,751
Total liabilities			$	68,387,427		$	55,925,162
Capital and surplus
Common stock, $2,500 par value per share, 2,000 shares authorized, 1,000 shares issued and outstanding at 2025 and 2024				2,500			2,500
Paid in surplus				3,763,511			2,952,873
Unassigned surplus				742,450			972,772
Admitted disallowed IMR				119,753			94,137
Total capital and surplus				4,628,214			4,022,282
Total liabilities, capital and surplus			$	73,015,641		$	59,947,444

Forethought Life Insurance Company
(a wholly-owned subsidiary of Commonwealth Annuity and Life Insurance Company)
Statutory Statements of Operations
For the Years Ended December 31, 2025, 2024 and 2023

(Dollars In thousands)

	Notes		2025			2024			2023
Revenue
Premiums and annuity considerations		9	$	8,389,214		$	8,793,184		$	6,499,001
Net investment income		4		3,028,217			2,667,335			2,516,127
Amortization of interest maintenance reserve				(41,278	)		(19,614	)		5,040
Commissions, expense allowances, and reserve adjustments on reinsurance ceded				418,106			523,802			354,232
Separate Accounts net gain from operations excluding unrealized gains or losses				(30,029	)		41,545			—
Other income		15		32,005			9,205			(16,808	)
Total revenues				11,796,235			12,015,457			9,357,592
Benefits and expenses
Benefits paid or provided for:
Death benefits				182,227			152,246			154,451
Annuity payments				617,209			563,799			556,672
Accident and health claims				6,807			5,972			5,664
Interest and other payments on policy funds				247,868			340,137			395,949
Surrender benefits				4,162,234			4,288,806			4,022,035
Change in policy reserves				3,384,164			4,364,522			2,642,780
Total benefits				8,600,509			9,715,482			7,777,551
Net transfers to separate accounts		16		1,319,744			621,180			106,123
Commissions				943,212			802,345			449,166
General insurance expenses				446,204			427,059			413,303
Taxes, licenses and fees				28,168			23,173			18,021
Change in loading expenses				44,034			17,501			442
Other expenses		15		778,172			490,144			401,863
Total benefits and expenses				12,160,043			12,096,884			9,166,469
Net (loss) gain from operations before federal income taxes and realized capital losses				(363,808	)		(81,427	)		191,123
Federal and foreign income taxes		7		281,421			(207,188	)		100,448
Net (loss) gain from operations before realized capital gains				(645,229	)		125,761			90,675
Net Realized capital gains (losses), net of tax and transfers to interest maintenance reserve		4		125,007			(540	)		(92,651	)
Net income (loss)			$	(520,222	)	$	125,221		$	(1,976	)

Forethought Life Insurance Company
(a wholly-owned subsidiary of Commonwealth Annuity and Life Insurance Company)
Statutory Statements of Changes in Capital and Surplus
For the Years Ended December 31, 2025, 2024 and 2023

(Dollars in thousands)

	Capital Stock		Paid in Surplus		Other		Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2022	$	2,500	$	1,777,873	$	—	$	895,587		$	2,675,960
Net Loss		—		—		—		(1,976	)		(1,976	)
Change in net unrealized capital gains		—		—		—		26,954			26,954
Change in unrealized foreign exchange capital loss		—		—		—		1,627			1,627
Change in net deferred income tax		—		—		—		133,067			133,067
Change in non-admitted assets		—		—		—		(47,288	)		(47,288	)
Change in asset valuation reserve		—		—		—		(47,785	)		(47,785	)
Capital contribution		—		100,000		—		—			100,000
Change in surplus as a result of reinsurance		—		—		—		(1,635	)		(1,635	)
Change in surplus due to ceded unrealized gains		—		—		—		32,037			32,037
Prior year reserve correction		—		—		—		(20,064	)		(20,064	)
Balance at December 31, 2023	$	2,500	$	1,877,873	$	—	$	970,524		$	2,850,897
Net Income		—		—		—		125,221			125,221
Change in net unrealized capital gains		—		—		—		(107,468	)		(107,468	)
Change in unrealized foreign exchange capital loss		—		—		—		(14,690	)		(14,690	)
Change in net deferred income tax		—		—		—		(172,014	)		(172,014	)
Change in non-admitted assets		—		—		—		6,866			6,866
Change in surplus in separate accounts		—		—		—		39,049			39,049
Change in asset valuation reserve		—		—		—		24,790			24,790
Capital contribution		—		1,075,000		—		—			1,075,000
Change in surplus as a result of reinsurance		—		—		—		211,215			211,215
Change in surplus due to ceded unrealized gains		—		—		—		(12,642	)		(12,642	)
Other changes to capital and surplus		—		—		94,137		(94,137	)		—
Prior year correction		—		—		—		(3,942	)		(3,942	)
Balance as of December 31, 2024		2,500		2,952,873		94,137		972,772			4,022,282
Net income		—		—		—		(520,222	)		(520,222	)
Change in net unrealized capital gains		—		—		—		196,920			196,920
Change in unrealized foreign exchange capital loss		—		—		—		49,791			49,791
Change in net deferred income tax		—		—		—		345,338			345,338
Change in non-admitted assets		—		—		—		15,166			15,166
Change in surplus in separate accounts		—		—		—		(42,326	)		(42,326	)
Change in asset valuation reserve		—		—		—		(212,797	)		(212,797	)
Capital contribution		—		810,638		—		—			810,638
Change in surplus as a result of reinsurance		—		—		—		(68,855	)		(68,855	)
Change in surplus due to ceded unrealized gains		—		—		—		45,845			45,845
Other changes to capital and surplus		—		—		25,616		(25,616	)		—
Prior year correction		—		—		—		(13,566	)		(13,566	)
Balance as of December 31, 2025	$	2,500	$	3,763,511	$	119,753	$	742,450		$	4,628,214

Forethought Life Insurance Company
(a wholly-owned subsidiary of Commonwealth Annuity and Life Insurance Company)
Statutory Statements of Cash Flows
For the Years Ended December 31, 2025, 2024 and 2023

(Dollars in thousands)

	2025			2024			2023
Cash from operations
Premiums and annuity considerations	$	8,485,273		$	8,470,354		$	7,017,428
Net investment income		2,766,964			2,456,478			2,420,593
Other income		464,187			567,529			331,877
Total receipts from operations		11,716,424			11,494,361			9,769,898
Benefit and loss related payments		5,189,593			4,910,382			5,666,656
Net transfers to separate accounts		660,181			663,011			106,470
Commissions and expenses paid		2,180,308			1,803,906			1,318,423
Federal income taxes paid		(222,410	)		435,943			363,778
Total payments from operations		7,807,672			7,813,242			7,455,327
Net cash from operations		3,908,752			3,681,119			2,314,571
Cash from investments
Proceeds from investments sold, matured or called
Bonds		19,230,648			11,936,742			6,731,511
Stocks		69,065			—			33,937
Other invested assets		4,579,025			4,947,172			2,452,365
Real Estate		12,967			9,709			1,921
Mortgage loans		4,046,673			2,843,708			1,318,479
Net gains or (losses) on cash, cash equivalents, and short-term investments		(2,221	)		—			—
Miscellaneous Proceeds		14,680			113,461			123,319
Total cash proceeds from investments		27,950,837			19,850,792			10,661,532
Cost of investments acquired
Bonds		27,136,215			13,023,663			6,784,441
Stocks		177,524			13,224			25,106
Other invested assets		5,712,889			5,898,201			2,171,206
Real Estate		4,327			1,872			5,138
Mortgage loans		4,925,430			6,739,316			3,415,986
Miscellaneous Applications		672,221			195,378			329,016
Total cost of investments acquired		38,628,606			25,871,654			12,730,893
Net increase in policy loans and premium notes		(338	)		(445	)		83
Net cash used for investments		(10,677,431	)		(6,020,417	)		(2,069,444	)
Cash from financing and other sources
Capital and paid in surplus		650,000			1,075,000			100,000
Net deposits on deposit-type contracts		4,486,880			(730,349	)		(619,281	)
Net change in funds held for reinsurers		1,101,382			1,396,413			953,768
Net change in derivative collateral and repurchase agreements		543,720			(816,825	)		824,174
Other cash (applied) provided		(28,204	)		67,599			(490,131	)
Net cash from financing and other sources		6,753,778			991,838			768,530
Net change in cash, cash equivalents, and short-term investments		(14,901	)		(1,347,460	)		1,013,657
Beginning of the year		1,611,126			2,958,586			1,944,929
End of the year	$	1,596,225		$	1,611,126		$	2,958,586
Supplemental schedule of non-cash investing activities
Paid-in-kind Interest Bonds		26,922			19,714			952
Paid-in-kind Interest Mortgages		22,635			15,222			136
Paid-in-kind Interest Other Invested Assets		49,433			21,239			1,331
Paid-in-kind Stocks		23			—			—
Reclass of residual tranches		—			—			363,901
Non cash investment transactions — stocks		10,125			—			29,033
Non cash investment transactions — bonds		293,780			1,132,325			495,639
Non cash investment transactions — mortgages		229,136			263,666			170,193
Non cash investment transactions — other invested assets		88,191			53,472			14,030
Non cash investment transactions — real estate		—			19,637			—
Non cash capital contributions other invested assets		172,212			—			—
Reclass due to Principal Based Bond Definition — other invested assets		121,940			—			—
Ceded investment income to settle reinsurance transactions					(11,038	)		—
Bonds to settle reinsurance transactions					(1,878,099	)		—
Mortgages to settle reinsurance transactions					(822,847	)		—
Ceded premiums from reinsurance transactions					(274,424	)		—
Reinsurance ceded payable					4,995			—
Non Cash Ceded Commission					56,580			—
Ceded deferred gain					212,850			—
Supplemental schedule of non-cash financing and other activities
FWH payable on reinsurance ceded		1,885,719			—			—
Deposit type contracts ceded to settle reinsurance transactions		(1,885,719	)		—			—

1. ORGANIZATION AND NATURE OF OPERATIONS

Forethought Life Insurance Company, an Indiana domiciled life insurance company, (FLIC or the Company) is a wholly owned subsidiary of Commonwealth Annuity and Life insurance company, a Massachusetts domiciled life insurance Company (Commonwealth Annuity), which in turn is a wholly owned indirect subsidiary of The Global Atlantic Financial Group LLC, a Bermuda company (Global Atlantic, which shall mean The Global Atlantic Financial Group LLC and, unless otherwise indicated or the context otherwise requires, its applicable subsidiaries). Global Atlantic is wholly-owned by KKR & Co. Inc (KKR).

On February 1, 2021, KKR indirectly acquired a majority interest in the Company following the merger of Global Atlantic Financial Group Limited (GAFGL) and Magnolia Merger Sub Limited, with GAFGL as the surviving entity of the merger transaction. Prior to the merger transaction, Magnolia Merger Sub Limited was a Bermuda exempted company, a direct wholly owned subsidiary of Magnolia Parent LLC (now known as The Global Atlantic Financial Group LLC or Global Atlantic) and an indirect subsidiary of KKR. Accordingly, Global Atlantic is now the holding company of GAFGL and KKR is deemed the ultimate controlling person of the Company.

On January 2, 2024, KKR acquired all the remaining equity interests in Global Atlantic that KKR did not already own. As of January 2, 2024, KKR owns 100.0% of Global Atlantic.

The Company's principal products are fixed-rate and fixed-indexed annuities, referred to together as "fixed annuities", and FLIC is Global Atlantic's flagship seller of these policies. FLIC's retirement products are distributed primarily through a network of industry-leading distribution partners. FLIC's preneed life insurance products are distributed through funeral homes. Commencing in 2021, the Company issues funding agreement backed notes for the purpose of reinvesting deposited funds. FLIC is licensed in 49 states (all except New York) and the District of Columbia.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared in conformity with statutory accounting practices prescribed or permitted by the Insurance Department of the State of Indiana ("Indiana SAP"), which differ in some respects from accounting principles generally accepted in the United States of America (GAAP). Prescribed statutory accounting practices (SAP) include publications of the National Association of Insurance Commissioners "Accounting Practices and Procedures Manual" (NAIC SAP), state laws, regulations and general administrative rules. The more significant of these differences are as follows:

• Bonds which are "available-for-sale" or "trading" are carried at fair value under GAAP, and are carried at amortized cost under NAIC SAP, except for bonds in or near default which are carried at the lower of fair value or amortized cost under NAIC SAP;

• Derivatives for which the Company employs fair value accounting are carried at fair value. However, changes in unrealized capital gains and losses are not recognized in net income, but as changes to surplus;

• The Asset Valuation Reserve (AVR) is required under NAIC SAP to offset potential credit-related investment losses on bonds, mortgage loans, stocks, real estate, and other invested assets. The AVR is recorded as a liability with changes in the reserve accounted for as direct increases or decreases in surplus. Under GAAP, no such reserve is required;

• The Interest Maintenance Reserve (IMR) is required under NAIC SAP to defer recognition of realized gains and losses (net of applicable federal income taxes) on short and long term fixed income investments resulting from interest rate changes. The deferred gain and loss is amortized over the expected remaining life (maturity) of the investment sold. In the event that realized capital losses exceed gains on a cumulative basis, negative IMR is reclassified to Other Assets on the Statement of Admitted Assets and Liabilities and admitted to extent that it is within 10% of an adjusted surplus. Any admitted balance is presented as "admitted disallowed IMR" in the sections of Surplus and is excluded from Unassigned surplus for the purposes of establishing level of dividends which may be paid by the Company. Under GAAP, no such reserve is required;

• Policy acquisition costs, such as commissions, and other costs that are directly related to the successful efforts of acquiring new business are deferred under GAAP. Under NAIC SAP, such items are recorded as expenses when incurred;

• Benefit reserves are determined using statutorily prescribed interest, morbidity and mortality assumptions under NAIC SAP, except under certain principles-based reserve methodologies. With respect to variable annuities, VM-21 prescribes

various approaches for setting assumptions related to policyholder and economic behavior that can vary by reserve component (Stochastic Reserve and Standard Projection Amount). With respect to life insurance products, valuation assumptions are prudent estimates used in determining Stochastic and Deterministic reserve components as prescribed by VM-20. In all cases the Company follows these prescribed practices. Under US GAAP, reserves and related balances are generally calculated using assumptions that are based on best estimates, which in some cases require appropriate adjustments that are required under certain FASB Accounting Standards. Effective January 1, 2023, public company reporting for long duration insurance contracts changed under the new long duration targeted improvements (LDTI) insurance accounting standard. LDTI requires the unlocking of assumptions for traditional life and limited pay contracts, requiring more frequent update to best estimates;

• Under NAIC SAP, amounts recoverable from reinsurers for unpaid losses are not recorded as assets, but as offsets against the respective policyholder liabilities. Under GAAP, amounts recoverable from reinsurers for unpaid losses are recorded as assets and not offset against the respective policyholder liabilities. Reinsurance balance amounts deemed to be uncollectible are written off through a charge to operations. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings;

• Deferred income taxes, which provide for book/tax temporary differences, are charged directly to unassigned surplus under NAIC SAP, whereas under GAAP, they are included as a component of net income. Deferred tax assets are also subject to an admissibility test under NAIC SAP;

• Under NAIC SAP, certain items are designated as "non-admitted" assets (such as furniture and equipment, prepaid expenses, bills receivable, computer system software, and agents' balance, etc.) and are excluded from assets by a direct charge to surplus. Under GAAP, such assets are carried on the balance sheet with appropriate valuation allowances;

• Under GAAP acquisition accounting, an intangible asset can be assigned a value representing the cost to duplicate, create or replace the asset, assigned a finite life, and amortized accordingly. NAIC SAP does not recognize this type of transaction but recognizes any amount paid in excess of the subsidiary's underlying statutory capital and surplus as unamortized goodwill on the parent company's books. Goodwill is then amortized into unrealized capital gains and losses, on a straight line basis for a period which the acquiring entity benefits economically, not to exceed 10 years;

• Under GAAP accounting, the Company's assets and liabilities were remeasured at fair value upon the close of the KKR acquisition. This resulted in the recognition of Value of Business Acquired (VOBA), which is generally amortized on a constant level basis using policy count over the estimated lives of the contracts, and goodwill, which is not amortized but assessed for impairment annually or more frequently if circumstances indicate impairment may have occurred, for GAAP. There was no such remeasurement of assets and liabilities for Statutory reporting. Under NAIC SAP, consideration in excess of the net book value of business acquired is recognized as a ceding commission. Ceding commission expenses are recognized in income on the date of the transaction. Ceding commission revenues are recognized as a separate surplus item on a net of tax basis and are subsequently amortized into income as earnings from the business emerge;

• Under NAIC SAP, revenues for annuity contracts and universal life policies consist of the entire premium received, and benefits incurred represent the total of death benefits paid, surrenders (net of surrender charges), and the change in policy reserves. Under GAAP, premiums received for annuity contracts and universal life that do not include significant mortality risk would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values. Charges for mortality expenses and surrenders for both types of policies would be recognized as revenue under GAAP;

• Policyowner dividends are recognized when declared under NAIC SAP rather than over the term of the related policies as required by GAAP;

• Under GAAP the Company has elected to carry the funds withheld assets at fair value while for statutory treatment the Company carries the funds withheld assets at amortized cost;

• Under NAIC SAP, cash and short-term investments in the statements of cash flows represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less;

• Investments in subsidiaries where the Company has the ability to exercise control are consolidated for GAAP reporting. Under NAIC SAP, the equity value of subsidiaries is recorded as other invested assets and investments in common stocks of affiliated entities;

The effects on the financial statements of the variances between statutory and GAAP, although not readily determinable, are presumed to be material.

Use of Estimates

The preparation of financial statements in accordance with statutory accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ significantly from those estimates. Significant estimates included in the accompanying statutory basis financial statements are assumptions and judgments utilized in determining if declines in fair values of investments are other-than-temporary, valuation methods for infrequently traded securities and private placements, policy liabilities, accruals relating to legal and administrative proceedings and estimates to establish the reserves for future policy benefits.

Investments

Bonds

Commencing January 1, 2025, bonds are subject to principle-based bond definition adopted guidance, which requires that certain criteria are met in order to be reported as a bond for statutory purposes. Bonds meeting this definition are categorized as either issuer-credit obligations, or asset-backed securities.

The NAIC classifies bonds into six quality categories and 20 subcategories. These categories range from 1A (the highest) to 5C (the lowest) for non-defaulted bonds, and category 6 for bonds in and near default. Bonds in default are required to be carried at the lower of amortized cost or NAIC fair value. Fair value is 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.

Bonds and preferred stocks, excluding loan-backed and structured securities (LBASS), are stated at amortized cost using the modified scientific method, or fair value in accordance with the "Purposes and Procedures Manual (P & P Manual) of the NAIC Capital Markets and Investment Analysis Office" (CMIAO). Fair values are measured in accordance with the Statements of Statutory Accounting Principles (SSAP) No. 100 Fair Value Measurements (SSAP No.100). Short-term investments are highly liquid investments readily convertible to cash, with maturities of greater than 90 days and less than one year at time of purchase and are reported at amortized cost.

LBASS are stated at amortized cost or fair value in accordance with the P & P Manual of the CMIAO. Prepayment assumptions are primarily obtained from external sources or internal estimates, and are consistent with the current interest rate and economic environment. The prospective adjustment method is used on most non-agency LBASS. Fair values are based on quoted market prices. If a quoted market price is not available, fair values are estimated using independent pricing sources or internally developed pricing models, based on discounted cash flow analysis. The Company reviews securities at least quarterly for other-than-temporary impairments (OTTI) using current cash flow assumptions.

The NAIC has contracted with Blackrock for non-agency Residential Mortgage Backed Securities (RMBS) and Commercial Mortgage Backed Securities (CMBS), to provide expected loss information, which the Company must use to determine the appropriate NAIC designations for accounting, and risk-based capital (RBC) calculations.

Preferred Stock

Preferred stocks are carried at cost or amortized costs except those rated NAIC class 4 or lower quality, which are carried at the lower of cost or fair value. Changes to preferred stock values are reported as an adjustment to surplus.

Common Stock

Unaffiliated common stocks are reported at fair value based on quoted market prices or determined internally utilizing available market data and financial information pertaining to the underlying company except for Federal Home Loan Bank (FHLB) common stock which is valued at cost. The related net unrealized gains or losses are reported in unassigned surplus. The related adjustment for federal income taxes is included in deferred income taxes in unassigned surplus.

Mortgage Loans

Mortgage loans on real estate are carried at unpaid principal balances, net of discounts/premiums and valuation allowances, and are secured. Specific valuation allowances are established for the excess carrying value of the mortgage loan over its estimated fair value, when it is probable that based on current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Specific valuation allowances are based on the fair value of the collateral. Fair value is determined by discounting the projected cash flows for each property to determine the current net present value.

Commercial mortgage loans (CMLs) acquired at a premium or discount are carried at amortized cost using the effective interest rate method. CMLs held by the Company are diversified by property type and geographic area throughout the United States. CMLs are considered impaired when it is probable that the Company will not collect amounts due according to the terms of the original loan agreement. The Company assesses the impairment of loans individually for all loans in the portfolio. The Company estimates the fair value of the underlying collateral using internal valuations generally based on discounted cash flow analyses.

Financial Instruments and Derivatives

In the normal course of business, the Company enters into transactions involving various types of financial instruments including derivatives. Derivatives are instruments that derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. Derivatives may be privately negotiated contracts, which are usually referred to as over-the-counter (OTC) derivatives, or they may be listed and traded on an exchange (exchange-traded). Exchange-traded equity futures are transacted through a regulated exchange. From time to time, futures contracts are terminated. The clearinghouse guarantees the performance of both counterparties, which mitigates credit risk.

The Company primarily uses OTC derivatives to hedge its exposure to fixed annuity and preneed products. Some annuity products provide policy holders the potential return that is linked to the market while some preneed products provide death benefits with growth rates determined by various consumer price indexes (CPI). Fixed index annuity contracts credit interest based on certain indices, primarily the Standard & Poor's 500 Composite Stock Price Index. OTC call options and call spreads are purchased to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. Upon exercise, the Company will receive the fair value of the call options and call spreads. For life products whose death benefit growth rate is determined by various consumer price indexes CPI, the Company has hedged this risk by entering into CPI swaps. The Company values the OTC options utilizing the Black-Scholes and Heston models. The Company also compares the derivative valuations to the daily counterparty marks to validate the model outputs. The parties with whom the Company enters into derivative contracts are highly rated financial institutions. Contracts are also fully supported by collateral, which minimizes the counterparty credit risk associated with such contracts. CPI swaps are accounted for using fair value accounting.

The Company also owns foreign currency denominated assets that generate exposure to FX risk. The Company has hedged this risk through the use of currency swaps and forwards. Under the terms of the contracts, the Company pays fixed and floating rate terms denominated in foreign currency and receives fixed USD. The Company considers these derivatives to be cash flow hedges. Under such treatment, the unrealized gains and losses are recorded consistent with the bonds hedged.

Low Income Housing Credits

The Company holds investments in Low Income Housing Tax Credits with 10 years remaining of unexpired tax credits and with a required holding period of 15 years.

Other Invested Assets

Other invested assets consist primarily of collateral loans, which are carried at amortized costs; securities which do not qualify as bonds, which are carried at the lower of fair value or amortized cost; residual tranche investments, which are carried at the lower of fair value or amortized cost; and investments in partnerships and LLCs, which are accounted for using the equity method of accounting.

Cash and Short-Term Investments

Cash and short-term investments include cash on hand, amounts due from banks, and highly liquid short-term investments. The Company considers all investments with an original maturity of 90 days or less as cash equivalents. Cash equivalent investments are stated at amortized cost. The Company considers all investments with an original maturity of greater than 90 days and less than one year as short-term investments. Short-term investments are stated at amortized cost.

Investment Income

Investment income is recognized on an accrual basis. Any investment income which is over 90 days past due is excluded from surplus. Investments in bonds that are delinquent are placed on non-accrual status, and thereafter interest income is recognized only when cash payments are received.

Capital Gains and Losses

Realized capital gains and losses are determined on the basis of specific identification and are recorded net of related federal income taxes. The AVR is established by the Company to provide for potential losses in the event of default by issuers of certain invested assets. These amounts are determined using a formula prescribed by the NAIC and are reported as a liability. The formula for the AVR provides for a corresponding adjustment for realized gains and losses. Under a formula prescribed by the NAIC, the Company defers, to the IMR, the portion of realized gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the security.

The Company acquires IMR associated with certain assumed blocks of business through reinsurance transactions. Should realized capital losses exceed gains on a cumulative basis, the resulting negative IMR is reclassified to other assets and recorded as an admitted asset up to 10% of the Company's prior period adjusted capital and surplus.

Impairments

The Company evaluates mortgages for impairment based on the credit quality of the borrowers ability to pay, common stocks, which are primarily affiliated companies, based on the underlying financial condition of those companies, and joint ventures, partnerships and Limited Liability Companies (LLCs) when it is probable that it will be unable to recover the carrying amount of the investment or there is evidence indicating inability of the investee to sustain earnings that would justify the carrying value of the investment.

At least quarterly, management reviews impaired securities for OTTI. The Company considers several factors when determining if a security is other-than-temporarily impaired, including but not limited to the following: its intent and ability to hold the impaired security until an anticipated recovery in value; the issuer's ability to meet current and future principal and interest obligations for bonds; the length and severity of the impairment; and, the financial condition and near term and long-term prospects for the issuer. The review process involves monitoring market events that could impact issuers' credit ratings, business climate, management changes, litigation and government actions and other similar factors. The process also involves monitoring late payments, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. Additional factors are considered when evaluating the unique features that apply to certain structured securities, including but not limited to the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority with the tranche structure of the security.

Recognition of Premium Income and Acquisition Costs

Life premiums are recognized as income over the premium-paying period of the related polices. Annuity considerations are recognized as income when received. Deposits on deposit-type contracts, such as funding agreements, supplemental contracts, dividend accumulations, and premium and other deposit funds, are recorded as a liability when received. Considerations for inforce block liabilities assumed are recognized as premium income when received. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred.

Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.

Modified Coinsurance and Funds Withheld Reserve Adjustment

In accordance with SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance (SSAP No. 61R), the cedant retains invested assets supporting ceded reserves for modified coinsurance or funds withheld coinsurance. The counterparties settle statutory net income on these invested assets periodically on the reinsured business. The other significant contributors to the settlement activity are premiums, benefits, transfers to and from separate accounts, change in statutory reserves, mark-to-market of the derivative portfolio and other investment returns.

Policy and Contract Claims

The liability for policy and contract claims is based on actual claims submitted but not paid on the statement date and an estimate of claims that had been incurred but not been reported on the statement date.

Insurance Reserves and Annuity and Other Funds

Reserving Practices

Reserves for life insurance policies are based on amount of insurance, issue age, duration, and premium paying pattern. Interest rates range from 3.0% to 5.5%, depending on the date of policy issue. The majority of reserves are calculated using the 1980 CSO Mortality Table. Tabular interest on funds not involving life contingencies have been determined by formula as described in the NAIC Annual Statement Instructions.

Reserves for a majority of the annuity contracts are determined in accordance with Commissioners' Annuity Reserve Valuation Method (CARVM). Valuation interest rates range from 3.0% to 6.25% based on the date of issue. The majority of reserves are calculated using the Annuity 2000 mortality table and 2012 Individual Annuity Reserving mortality table.

All policies issued by the Company had gross premiums in excess of net premiums.

Substandard policies are reserved in relation to net amount at risk.

Federal Income Taxes

Deferred federal income taxes are calculated as defined by SSAP No. 101, Income Taxes (SSAP No. 101). SSAP No. 101 establishes deferred tax assets and liabilities based on differences between statutory and tax bases of reporting.The deferred tax assets are then subject to an admissibility test, which can limit the amount of deferred tax assets that are recorded. The deferred federal income taxes result primarily from insurance reserves, policy acquisition expenses, and ceding commissions.

Separate Accounts

Separate account assets and liabilities represent segregated funds administered and invested by the Company for the benefit of certain variable annuity contract holders. Assets consist principally of bonds, common stocks, mutual funds, short-term obligations and are stated at fair value. The investment income gains and losses of these accounts generally accrue to the contract holders and therefore, are not included in the Company's net income. Appreciation and depreciation of the Company's interest in the separate accounts, including undistributed net investment income, is reflected as other income. The fair value of assets and liabilities held in separate accounts is based on quoted market prices. Separate account assets representing contract holder funds are measured at fair value and reported as a summary total in the Statements of Admitted Assets, Liabilities, Capital and Surplus, with an equivalent summary total reported for separate account liabilities.

The Company receives fees for assuming mortality and certain expense risks. Such fees are included in Other Income in the accompanying Statement of Operations. Reserves in the separate accounts for variable annuity contracts are provided in accordance with the Variable Annuity Commissioners' Annuity Reserve Valuation Method (VA CARVM) under Actuarial Guideline VM-21. However, the adoption of VM-21 did not have an impact as these contracts are 100% ceded.

Transfers from Separate Accounts Due or Accrued, and Accrued Expense Allowance

The Company records a negative liability due from the separate accounts which primarily represents amounts that are held for policy account values in excess of statutory reserves, and certain other policy charges, including cost of insurance charges, administrative charges and guaranteed minimum death benefit (GMDB) charges, partially offset by associated reinsurance credits. This negative liability due from the separate accounts also includes assumed and ceded business. Amounts held in excess of the statutory reserves cannot be transferred from the separate account unless the policy is terminated or the policy account value is withdrawn.

Guaranty Fund Assessments

Guaranty fund assessments are paid to various states. The assessments are amortized against the premium tax benefit period.

Affiliated Entities and Related Parties

The Company recognizes entities which are under common control as affiliated entities consistent with SSAP No. 25 — Affiliates and Other Related Parties guidance. In addition, entities in which the company or affiliated companies own at least 10% of

the voting interests are considered to be related parties even if there is no control or affiliation, and are disclosed consistent with related party disclosure guidelines in SSAP No. 25 guidance.

Recently Adopted Accounting Standards

In August, 2025, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 51 — Life Contracts which reflects different reversing methodologies in VM-22, Statutory Maximum Valuation Interest Rates for Income Annuities, and principle-based reserve (PBR) requirements. The Company has adopted these changes for the 2025 annual reporting period.

In March, 2025, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 1 — Accounting Policies, Risks & Uncertainties, and Other Disclosures which provided additional specifications on how modco/funds withheld assets should be captured as restricted assets and requires all restricted assets to be reported in a single table. The Company has adopted these changes for the annual 2025 reporting period.

In February, 2025, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 56 — Book Value Separate Accounts which clarify measurement method and transfer guidance for how transfers to/from the general account and separate account should be recognized. The Company has adopted these changes for the annual 2025 reporting period.

In August, 2024, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 15 — Debt and Holding Company Obligations to incorporate, with modification, the ASU 2023-06 disclosure requirements for unused commitments and lines of credit, extending the guidance to both short-term and long-term arrangements. The Company has adopted these changes for the 2025 annual reporting period.

In March, 2024, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 21R — Other Admitted Assets which provides guidance for debt securities that do not qualify as bonds under the Principles-Based Bond definition and measurement method guidance for all residual interests regardless of legal form, with a January 1, 2025 effective date. The Company has adopted accounting and presentation changes for the annual 2025 reporting period.

In August & March, 2024, the NAIC Statutory Accounting Principles Working Group adopted revisions to expand and amend guidance on New Markets Tax Credit Project within SSAP No. 93 — Low-Income Housing Tax Credit Property Investments to include all tax credit investments regardless of structure and type of state or federal tax credit program. Revisions to SSAP No. 94R — Transferable and Non-Transferable Stat Tax credits expand and amend guidance to include both purchased state and federal tax credits. The Company has adopted these changes for the annual 2024 reporting period.

In February, 2024, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 21R — Other Admitted Assets which incorporates a collateral loan disclosure that details admitted and nonadmitted collateral loans with the underlying collateral supporting the loan. The Company has adopted this disclosure change as appropriate.

In January, 2024, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 61R — Life, Deposit-Type and Accident and Health Reinsurance which provides guidance for the specific 2023 liquidation of U.S. based life reinsurer Scottish Re. The Company has adopted accounting and presentation changes to balances from this reinsurer as appropriate.

In December, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 30 — Unaffiliated Common Stock and SSAP No. 32 — Preferred Stock to address residual tranche investments which may be reported as preferred stock and common stock. Also, in September, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 48 — Joint Ventures, Partnerships, and Limited Liability Companies to address residual tranche investments which may be reported as equity method investments. These clarifications state that structures that are in-substance residual interests will be reported residual tranche investments. The Company has adopted these changes for the annual 2023 reporting period.

In October, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 20 — Nonadmitted Assets and SSAP No. 21R — Other Admitted Assets to clarify guidance on collateral loan accounting and reporting. The adopted revisions clarify that all collateral assets must qualify as admitted invested assets if they were owned directly and provides additional details about documentation required for the collateral assets. The Company has adopted these changes for the annual 2023 reporting period, and updated policies and procedures as appropriate.

In August, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 34 — Investment Income Due and Accrued, which requires new disclosure around aggregate paid-in-kind (PIK) interest included in asset balances. The Company has included such disclosures in 2023 financial statements as appropriate.

In August, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 7 — Asset Valuation and Interest Maintenance Reserve which allows for the temporary admittance of a net negative interest maintenance reserve (IMR). Outlined in INT 23-01T, this guidance allows the admittance of negative IMR up to 10% of adjusted capital and surplus and provides additional accounting and reporting guidance. Pending any future adoptions, this interpretation will be automatically nullified on January 1, 2027. The Company has adopted these changes for the annual 2023 reporting period.

In August, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP 43R — Loan-Backed and Structured Securities which add collateralized loan obligations (CLOs) to financial modeling guidance and provide clarification that CLOs are not captured as legacy securities. This guidance aligns with changes adopted by the NAIC's Valuation of Securities Task Force in February, 2023. The Company has adopted these changes for the annual 2023 reporting period and there is no significant impact on the financial statements.

In August, 2023, the NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 26R — Bonds, SSAP No. 43R — Loan-Backed and Structured Securities and SSAP No. 21R — Other Admitted Assets which establishes a new principles-based definition of a bond for statutory reporting. The Company has adopted these changes for the annual 2025 reporting period. The impacts of the transition are included in the Change in Accounting Principle section below.

Correction of Errors

During 2025, corrections were made to 2024 balances resulting in a correction to premiums, expense allowances, reserves, and deferred gains. The changes made are being treated as a correction of an error and presented as an adjustment to unassigned surplus of $13,566. The impact of these errors has been reported as an adjustment to opening surplus per SSAP No. 3, Accounting Changes and Corrections of Errors, paragraph 10, which states: "Correction of errors in previously issued financial statements shall be reported as adjustments to unassigned funds (surplus) in the period an error is detected." The Company does not believe these errors are significant to capital and surplus at December 31, 2025, or in prior years.

During 2024, the company discovered reporting errors for the prior year balances resulting in a $745 increase in insurance taxes, licenses, and fees. As a result, $692 of state income tax payable were written off. The company made a correction resulting in a $3,889 decrease in premiums. The impact of these errors has been reported as an adjustment to opening surplus per SSAP No. 3, Accounting Changes and Corrections of Errors, paragraph 10, which states: "Correction of errors in previously issued financial statements shall be reported as adjustments to unassigned funds (surplus) in the period an error is detected." The Company does not believe these errors are significant to capital and surplus at December 31, 2024, or in prior years.

During 2023, the Company discovered reporting errors for the prior year balances resulting in a $20,064 increase in interest and adjustments on contract or deposit-type contract funds and an increase in the remittances and items not allocated. The impact of these errors has been reported as an adjustment to opening surplus per SSAP No. 3, Accounting Changes and Corrections of Errors, paragraph 10, which states: "Correction of errors in previously issued financial statements shall be reported as adjustments to unassigned funds (surplus) in the period an error is detected." The Company does not believe these errors are significant to capital and surplus at December 31, 2023, or change in accounting principle in prior years.

Change in Accounting Principle

In 2025, the Company reviewed and evaluated their bond portfolios as part of the Principles Based Bond Definition Project. The Company reclassified certain investments that did not meet the new Principle Based Bond Definition, from bonds to other invested assets. The aggregate book adjusted carrying value after transition for all securities reclassified out of the bond category is $101,543. As a result of the reclassification, certain investments are carried at the lower of amortized cost or fair value as of January 1, 2025, whereas they had been carried at amortized cost as of December 31, 2024. The aggregate book adjusted carrying value of investments which were subject to this change in measurement basis is $78,347. The aggregate reduction in surplus due to reclassified investments which are now carried at the lower of amortized cost or fair value is $17,987. Effective January 2025, SSAP21, Other Admitted Assets was updated to reflect new accounting

requirements for residual tranche investments. The Company has adopted that guidance, and has elected the allowable earned yield method for its residual tranche investments.

3. PRESCRIBED AND PERMITTED ACCOUNTING PRACTICES

The Indiana Department of Insurance recognizes only statutory accounting practices prescribed or permitted by the State of Indiana for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under the Indiana Insurance Law. The NAIC's Accounting Practices & Procedures Manual has been adopted as a component of prescribed or permitted practices by the State of Indiana. The commissioner of the Indiana Department (the Commissioner) has the right to permit other specific practices that deviate from prescribed practices.

The Company, with the permission of the Commissioner, uses the Plan Type A discount rate with a guaranteed duration of less than five years under Actuarial Guideline 33 (AG33) on the entire in-force block of annuities with Guaranteed Minimum Withdrawal Benefits issued prior to October 1, 2013. By definition, AG33 would require the defined payments of the Guaranteed Lifetime Income Benefit (GLIB) benefit stream to be discounted using the Type B or Type C rate until the policy's contract value is exhausted and the additional payments to be discounted using the Type A rate. Type A, Type B, and Type C rates vary based on the withdrawal characteristics available to the policyholder for a specific contract.

The differences between NAIC SAP and Indiana SAP relate to reserve valuation prescribed by AG33. The differences are reflected in "increase in reserves for future policy benefits" for net income, and in "reserves for future policy benefits" for surplus.

A reconciliation of the Company's net income and capital and surplus between the practices prescribed and permitted by the State of Indiana and NAIC SAP is shown below:

	December 31,
	2025			2024			2023
Net income (loss), Indiana basis	$	(520,222	)	$	125,221		$	(1,976	)
Indiana permitted practice:
State permitted practices that (increase) / decrease NAIC SAP		2,264			8,890			(3,192	)
Net income (loss), NAIC statutory accounting practices	$	(517,958	)	$	134,111		$	(5,168	)
Statutory surplus, Indiana basis	$	4,628,214		$	4,022,282		$	2,850,897
Indiana permitted practice:
State permitted practices that (increase) / decrease NAIC SAP		(13,942	)		(15,760	)		(22,811	)
Statutory surplus, NAIC statutory accounting practices	$	4,614,272		$	4,006,522		$	2,828,086

4. INVESTMENTS

Bonds

Book Adjusted/Carrying Values and Fair Values

The book adjusted/carrying value and fair value of investment in long term, short-term (excludes non-bond investments of $0 and $141,981) and cash equivalent bonds (excludes non-bond cash and cash equivalent investments of $1,571,715 and $725,012) are as follows:

December 31, 2025

Book/
Adjusted
Carrying
Value

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair Value

Category:

U.S. government security obligations

60,431

865

(109

)

61,187

Non-U.S. sovereign jurisdiction securities

116,427

1,901

(8,705

)

109,623

Municipal bonds — general obligations
(direct & guaranteed)

48,392

539

(6,029

)

42,902

Municipal bonds — special revenue

705,482

378

(140,081

)

565,779

Project finance bonds issues by
operating entities

2,013,146

5,337

(8,908

)

2,009,575

Corporate bonds

10,026,996

145,028

(499,063

)

9,672,961

Single entity backed obligations

13,834

951

—

14,785

SVO-identified bond exchange traded
funds — fair value

78,466

—

78,466

Bank loans — acquired

864,193

3,455

(22,002

)

845,646

Other issuer credit obligations

134,674

1,889

—

136,563

Total issuer credit obligations

14,062,041

160,343

(684,897

)

13,537,487

Financial asset-backed securities —
self-liquidating

17,812,964

168,105

(337,940

)

17,643,129

Financial asset-backed securities — not
self-liquidating

2,294,291

17,455

(47,906

)

2,263,840

Non-financial asset-backed securities

1,753,120

19,089

(51,334

)

1,720,875

Total asset-backed securities

21,860,375

204,649

(437,180

)

21,627,844

	December 31, 2024
	Book/ Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Long Term, Short-Term and Cash Equivalent Bonds:
U.S. government security obligations	$	810,283	$	182	$	(10,633	)	$	799,832
All other governments		75,004		450		(12,027	)		63,427
Political subdivisions		43,244		288		(3,101	)		40,431
Special revenue and special assessment obligations		1,238,131		2,759		(184,408	)		1,056,482
Hybrid		62,329		866		(9,732	)		53,463
Industrial and miscellaneous		15,911,693		136,378		(929,627	)		15,118,444
Parent, Subsidiaries and Affiliates		9,819,128		22,581		(481,290	)		9,360,419
U.S. States, Territories and Possessions		69,486		430		(6,527	)		63,389
Total long term bonds		28,029,298		163,934		(1,637,345	)		26,555,887
Short-term bonds		340,956		45		(77	)		340,924
Total long term, short-term and cash equivalent bonds	$	28,370,254	$	163,979	$	(1,637,422	)	$	26,896,811

At December 31, 2025 and 2024, respectively, 93.1% and 93.8% of debt securities were rated by the NAIC as investment grade (1 or 2).

The book adjusted/carrying value and fair value of bonds by contractual maturity at December 31, 2025 are shown below. Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties or the Company may have the right to put or sell the obligations back to the issuers. Mortgage-backed securities are included in their own distinct category.

	Book/ Adjusted Carrying Value		Fair Value
Due in one year or less	$	124,713	$	126,182
Due after one year through five years		1,237,154		1,239,033
Due after five years through ten years		3,924,313		3,978,933
Due after ten years		8,775,861		8,193,340
Mortgage backed and asset backed securities		21,860,375		21,627,843
Total	$	35,922,416	$	35,165,331

The following tables provide information about the Company's bonds that have been continuously in an unrealized loss position:

December 31, 2025

Less than or equal to
Twelve Months

Greater than
Twelve Months

Total

Fair
Value

Gross
Unrealized
Losses

Fair
Value

Gross
Unrealized
Losses

Fair
Value

Gross
Unrealized
Losses

Category:

U.S. government security
obligations

1,028

(20

)

4,854

(89

)

5,882

(109

)

Non-U.S. sovereign jurisdiction
securities

—

32,513

(8,705

)

32,513

(8,705

)

Municipal bonds — general
obligations (direct &
guaranteed)

—

37,117

(6,029

)

37,117

(6,029

)

Municipal bonds — special
revenue

2,886

(221

)

554,558

(139,860

)

557,444

(140,081

)

Project finance bonds issues
by operating entities

1,036,405

(6,136

)

107,659

(2,772

)

1,144,064

(8,908

)

Corporate bonds

1,622,725

(26,920

)

2,039,434

(472,143

)

3,662,159

(499,063

)

Bank loans — acquired

385,804

(5,912

)

230,145

(16,090

)

615,949

(22,002

)

Total issuer credit obligations

3,048,848

(39,209

)

3,006,280

(645,688

)

6,055,128

(684,897

)

Financial asset-backed
securities — self-liquidating

5,840,970

(163,633

)

2,022,843

(174,307

)

7,863,813

(337,940

)

Financial asset-backed
securities — not
self-liquidating

227,902

(8,143

)

1,218,493

(39,763

)

1,446,395

(47,906

)

Non-financial asset-backed
securities

373,824

(33,982

)

313,373

(17,353

)

687,197

(51,335

)

Total asset-backed securities

6,442,696

(205,758

)

3,554,709

(231,423

)

9,997,405

(437,181

)

	December 31, 2024
	Less than or equal to Twelve Months					Greater than Twelve Months					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Long Term, Short Term and Cash Equivalent Bonds:
United States government	$	572,991	$	(10,065	)	$	22,814	$	(568	)	$	595,805	$	(10,633	)
All other governments		—		—			55,544		(12,027	)		55,544		(12,027	)
Political subdivisions		—		—			27,122		(3,101	)		27,122		(3,101	)
Special revenue and special assessment obligations		55,562		(354	)		911,173		(184,054	)		966,735		(184,408	)
Hybrid		—		—			27,598		(9,732	)		27,598		(9,732	)
Parent, Subsidiaries and Affiliates		4,921,032		(344,801	)		1,693,974		(136,489	)		6,615,006		(481,290	)
U.S. States, Territories and Possessions		569		(6	)		57,630		(6,521	)		58,199		(6,527	)
Industrial and miscellaneous		2,960,032		(48,710	)		6,437,864		(880,917	)		9,397,896		(929,627	)
Total long term bonds		8,510,186		(403,936	)		9,233,719		(1,233,409	)		17,743,905		(1,637,345	)
Short-term bonds		33,166		(77	)		—		—			33,166		(77	)
Total long term, short-term and cash equivalent bonds	$	8,543,352	$	(404,013	)	$	9,233,719	$	(1,233,409	)	$	17,777,071	$	(1,637,422	)

The Company has the intent and ability to hold all bonds in an unrealized loss position until amortized cost basis is recovered.

As of December 31, 2025 and 2024, the number of securities in an unrealized loss position for over 12 months consisted of 782 and 1,303, respectively.

In the course of the Company's asset management, no securities have been sold and reacquired within 30 days of the sale date to enhance the Company's yield on its investment portfolio.

Insurer Self-Certified Securities

The following represents securities for which the Company does not have all information required for the NAIC to provide a NAIC designation, but for which the Company is receiving timely payments of principal and interest. These securities are referred to as "5GI Securities".

The Company's 5GI securities as of December 31, 2025 and December 31, 2024, respectively, were as follows:

	Number of 5GI Securities				Aggregate BACV				Aggregate Fair Value
Investment	Current Year		Prior Year		Current Year		Prior Year		Current Year		Prior Year
Preferred stock — AC	$	2	$	3	$	1,175	$	24,746	$	1,175	$	24,152
ICO — AC		2		—		30,736		—		30,534		—
LB&SS — AC		—		22		—		105,674		—		89,973
Total	$	4	$	25	$	31,911	$	130,420	$	31,709	$	114,125

AC — Amortized cost

BACV — Book adjusted carrying value

Subprime Mortgage Related Risk Exposure

While the Company holds no direct investments in subprime mortgage loans, the Company has limited exposure to subprime borrowers, through direct investments in primarily investment grade securities with underlying subprime exposure. The Company's definition of subprime is predominantly based on borrower statistics from a residential pool of mortgages.

Included in the statistics evaluated is the average credit score of the borrower, the loan-to-value ratio, the debt-to-income statistics, and the diversity of all these statistics across the borrower profile. As is true for all securities in the Company's portfolio, the Company reviews the entire portfolio for impairments at least quarterly. Included in that analysis are current delinquency and default statistics, as well as the current and original levels of subordination on the security.

The Company has indirect subprime exposure through the following investments:

	December 31, 2025
	Actual Cost		Book/ Adjusted Carrying Value (excluding interest)		Fair Value		Other Than Temporary Impairment Losses Recognized
Loan backed and structured securities	$	278,701	$	297,383	$	315,894	$	—
Total	$	278,701	$	297,383	$	315,894	$	—
	December 31, 2024
	Actual Cost		Book/ Adjusted Carrying Value (excluding interest)		Fair Value		Other Than Temporary Impairment Losses Recognized
Loan backed and structured securities	$	436,129	$	385,398	$	386,837	$	—
Total	$	436,129	$	385,398	$	386,837	$	—

Mortgage Loans

Maturities

The maturity distribution for mortgages is as follows:

	Year Ended December 31,
	2025		Percentage
2026	$	3,091,880		14.11	%
2027		3,483,337		15.89	%
2028		1,879,368		8.57	%
2029		791,152		3.61	%
2030 and thereafter		12,674,659		57.82	%
Total	$	21,920,396		100.00	%

Impairments

The Company evaluates all of its mortgage loans for impairment. This evaluation considers the borrower's ability to pay and the value of the underlying collateral. When a loan is impaired, its impaired value is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, the impaired value may be based on a loan's observable market price (where available), or the fair value of the collateral if the loan is a collateral-dependent loan. An allowance is established for the difference between the loan's impaired value and its current carrying value. Additional allowance amounts established for incurred but not specifically identified impairments in the mortgage portfolio, based on analysis of market loss rate data, adjusted for specific characteristics of the Company's portfolio and changes in economic conditions. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

During 2025, the Company established a specific allowance of $123,042 on 9 high-risk commercial mortgage loans as a result of re-underwriting process by the KKR Real Estate Credit team. During 2024, the Company established a specific allowance of $98,610 on 7 high-risk commercial mortgage loans as a result of re-underwriting process by the KKR Real Estate Credit team

During 2025, the Company recognized total impairments of $5,048 on mortgage loans all of which was recorded as a reduction to the carrying value of loans. During 2024, the Company recognized total impairments of $113,327 on mortgage loans all of which was recorded as a reduction to the carrying value of loans. During 2023, the Company recognized total impairments of $0 on mortgage loans all of which was recorded as a reduction to the carrying value of loans.

Regions and Type

Mortgage loans are collateralized by the underlying properties. Collateral for commercial mortgage loans and residential loans must meet or exceed 125% of the loan at the time the loan is made. The Company primarily grants commercial and residential loans to customers throughout the United States. The Company has a diversified loan portfolio with no exposure greater than 17.87% of our total exposure in any state at December 31, 2025.

The following table presents the Company's CMLs by geographic region and property type:

	Year Ended December 31,
	2025		Percentage			2024		Percentage
Atlantic	$	7,184,320		32.77	%	$	7,223,414		34.34	%
Mountain		2,019,136		9.21	%		1,877,617		8.93	%
New England		823,626		3.76	%		851,421		4.05	%
North Central		738,016		3.37	%		760,435		3.62	%
Pacific		4,876,154		22.24	%		4,960,451		23.59	%
South Central		2,712,437		12.37	%		2,573,896		12.24	%
Various		3,566,707		16.28	%		2,782,886		13.23	%
Total	$	21,920,396		100.00	%	$	21,030,120		100.00	%

The mortgage loans by type are as follows:

	Year Ended December 31,
	2025		Percentage			2024		Percentage
Retail	$	226,255		1.03	%	$	149,515		0.71	%
Office		3,518,923		16.05	%		3,560,583		16.93	%
Industrial		2,898,057		13.22	%		3,278,346		15.59	%
Residential		14,162,227		64.61	%		9,376,696		44.59	%
Other		1,114,934		5.09	%		4,664,980		22.18	%
Total	$	21,920,396		100.00	%	$	21,030,120		100.00	%

In 2025 the minimum and maximum rates of interest received for commercial and residential loans were 2.44% and 11.00%. The maximum percentage of any one loan to the value of the security at the time of the loan was 100.00%. In 2024, the minimum and maximum rates of interest received for commercial loans were 0.88% and 12.13%. The maximum percentage of any one loan to the value of the security at the time of the loan was 100.00%.

Real Estate

The company owned real estate investments as follows:

	Year Ended December 31,
	2025		2024
Held for the production of income	$	17,439	$	13,111
Held for sale		9,188		11,576
Total	$	26,627	$	24,687

Derivatives and Hedging Activities

The Company utilizes various derivative instruments to hedge risk identified in the normal course of its insurance business. The Company owns equity index options to limit its net exposure to equity market risk. The Company also owns the currency and CPI derivatives to hedge the currency and inflation risk. The Company mitigates interest rate risk through the

use of interest rate futures, swaps, options and forwards. The Company receives collateral from its derivative counterparties to limit credit risk on the mark to market of open derivative trades.

The Company's derivative portfolio consists of equity index call options and spreads to hedge equity exposure associated with Equity Indexed Annuities underwritten. The Company utilizes CPI swaps to hedge the exposure to inflation risk associated with its prefunded funeral insurance business. The Company entered into currency swaps and forwards to limit its currency exposure from FX denominated assets and liabilities. The Company mitigates interest rate risk through the use of interest rate futures, swaps, options, and forwards. The total carrying values of derivative assets were $1,769,651 and $1,066,195 as of December 31, 2025 and 2024, respectively.

The Company accounts for its non-qualified hedges using the fair value method of accounting under SSAP No. 86, with changes in fair value recorded as unrealized investment gains or losses. The realized gains or losses are recorded upon the derivative contract expiry. The FX unrealized gains or losses on qualified currency swaps and currency forwards are recorded consistent with the hedged items. RSATs and other qualified hedges follow the accounting of the hedged item, and as such coupon payments on qualified swaps are recorded as net investment income. The total net investment income (loss) recognized from these derivative instruments were $(7,937), $(22,744) and $(5,032) as of 2025, 2024 and 2023.

The Company's credit risk is the risk of nonperformance by OTC counterparties. The Company limits this risk by utilizing and managing collateral according to a Credit Support Annex agreement (CSA). The company negotiates the CSA agreement with each highly rated counterparty prior to trading. Collateral is managed to CSA standards by derivative custodian BNY.

The current credit exposure of the Company's over the counter derivative contracts is limited to the fair value of $1,438,631 and $622,999 as of December 31, 2025 and 2024. Credit risk is managed by entering into transactions with creditworthy counterparties and obtaining net collateral of $1,818,426 and $898,890 from counterparties as of December 31, 2025 and 2024. In the event of the nonperformance by the counterparties, the Company has the right to the collateral pledged by counterparties. The exchange-traded futures are affected through a regulated exchange and positions are marked to market on a daily basis, the Company has little exposure to credit-related losses in the event of nonperformance by counterparties to such financial instruments.

The fair value of the derivative assets and liabilities by risk hedged, prior to derivative netting through same counterparties were as follows:

	As of December 31, 2025
Risk Hedged	Derivative Assets			Derivative Liabilities			Notional Amounts
Equity/Index	$	1,872,465		$	100,391		$	27,097,406
Inflation		7,920			908			200,000
Currency		29,801			227,097			7,345,663
Interest Rates		224,034			51,985			15,539,130
Gross fair value of derivative instruments	$	2,134,220		$	380,381		$	50,182,199
Offset per SSAP No. 64		(364,570	)		(364,570	)
Net fair value of derivative instruments	$	1,769,650		$	15,811
	As of December 31, 2024
Risk Hedged	Derivative Assets			Derivative Liabilities			Notional Amounts
Equity/Index	$	951,869		$	3,791		$	19,205,891
Inflation		7,573			664			255,000
Currency		137,353			30,166			3,654,386
Interest Rates		167,686			173,523			26,271,027
Gross fair value of derivative instruments	$	1,264,481		$	208,144		$	49,386,304
Offset per SSAP No. 64		(198,286	)		(198,286	)
Net fair value of derivative instruments	$	1,066,195		$	9,858

The fair value of the derivative assets and liabilities by instruments were as follows:

	As of December 31, 2025
Derivative Instruments	Derivative Assets			Derivative Liabilities			Notional Amounts
CPI Swaps	$	7,920		$	908		$	200,000
Currency Swaps / Forwards		29,801			227,097			7,345,663
OTC Options		1,871,919			98,926			26,322,874
Interest Rate Swaps		220,031			42,710			13,971,850
Futures		1,027			1,465			1,106,112
Bond Forwards		3,523			9,275			1,235,700
Gross fair value of derivative instruments	$	2,134,221		$	380,381		$	50,182,199
Offset per SSAP No. 64		(364,570	)		(364,570	)
Net fair value of derivative instruments	$	1,769,651		$	15,811
	As of December 31, 2024
Derivative Instruments	Derivative Assets			Derivative Liabilities			Notional Amounts
CPI Swaps	$	7,573		$	664		$	255,000
Currency Swaps / Forwards		137,353			30,166			3,654,386
OTC Options		950,726			3,791			18,463,524
Swaptions		9,132			2,574			2,700,000
Interest Rate Swaps		154,158			123,064			19,560,860
Futures		4,231			191			2,390,799
Bond Forwards		1,308			47,694			2,361,735
Gross fair value of derivative instruments	$	1,264,481		$	208,144		$	49,386,304
Offset per SSAP No. 64		(198,286	)		(198,286	)
Net fair value of derivative instruments	$	1,066,195		$	9,858

Other Investments

Other Invested Assets

Other invested assets on the Company's Statements of Admitted Assets, Liabilities, Capital and Surplus consist of term notes and loans, interests in LLCs and partnerships, low income housing tax credits and investments which do not qualify as bonds under the principle-based bond definition. The carrying value of these investments for the years ended December 31, were as follows:

	Year Ended December 31,
	2025		2024
Collateral loans	$	1,168,968	$	1,045,853
LLCs, partnerships, and joint ventures		2,071,944		1,007,944
Residual tranches		752,455		575,453
Receivables for securities		712,066		162,342
Other		115,487		2,895
Total	$	4,820,920	$	2,794,487

Collateral Loans

Year Ended December 31,

2025

Collateral Type

Aggregate
Collateral Loan

Admitted

Nonadmitted

Mortgage loans — affiliated

182,914

—

Mortgage loans — unaffiliated

287,641

—

Joint ventures, partnerships, and LLCs — affiliated

480,811

—

Joint ventures, partnerships, and LLCs — unaffiliated

192,603

—

Preferred stocks — affiliated

25,000

—

Total

1,168,969

—

Year Ended December 31,

2024

Collateral Type

Aggregate
Collateral Loan

Admitted

Nonadmitted

Mortgage loans — affiliated

362,750

—

Mortgage loans — unaffiliated

301,920

—

Joint ventures, partnerships, and LLCs — affiliated

161,160

—

Joint ventures, partnerships, and LLCs — unaffiliated

195,023

—

Preferred stocks — affiliated

25,000

—

Total

1,045,853

—

Cash and short-term investments

Cash and short-term investments held at December 31, were as follows:

	Year Ended December 31,
	2025		2024
Cash and cash equivalents	$	1,590,414	$	1,128,189
Short-term investments		5,811		482,937
Total	$	1,596,225	$	1,611,126

Restricted Assets

Restricted assets at December 31, were as follows:

	Year Ended December 31,
	2025							2024
	Gross		Net		Total Restricted to Total Admitted Assets			Gross		Net		Total Restricted to Total Admitted Assets			Increase / (Decrease)
FHLB capital stock	$	92,925	$	92,925		0.1	%	$	79,425	$	79,425		0.1	%	$	13,500
Pledged collateral to FHLB		5,763,599		5,763,599		7.9	%		3,286,717		3,286,717		5.5	%		2,476,882
Pledged collateral, other		49,229		49,229		0.1	%		49,106		49,106		0.1	%		123
On deposit with states		6,429		6,429		—	%		6,425		6,425		—	%		4
Total	$	5,912,182	$	5,912,182		8.1	%	$	3,421,673	$	3,421,673		5.7	%	$	2,490,509

As of December 31, 2025, the Company has invested assets in the general and separate accounts of $0 held under modco reinsurance and $16,039,622 held under funds withheld reinsurance agreements, which represented 0% and 22.0% of total admitted assets, respectively. Of these amounts, $4,695,248 were considered related party investments for the reinsurer.

Proceeds, Net Investment Income and Capital Gains and Losses

Proceeds from the sale of bonds and related capital gains and losses were as follows:

	Year Ended December 31,
	2025			2024			2023
Proceeds	$	11,775,697		$	5,268,225		$	1,489,339
Gross realized gains		75,671			15,650			26,960
Gross realized losses		(185,673	)		(124,280	)		(26,733	)
Total realized gains (losses)	$	(110,002	)	$	(108,630	)	$	227

Major categories of net investment income are summarized below:

	Year Ended December 31,
	2025			2024			2023
Mortgage loans	$	1,205,535		$	1,066,178		$	954,393
Bonds and stock		1,781,045			1,534,143			1,506,899
Real estate income		666			338			—
Short-term investments		67,419			102,006			52,092
Derivative instruments		(5,467	)		(13,982	)		(4,595	)
Other income		286,075			283,132			269,715
Gross investment income		3,335,273			2,971,815			2,778,504
Less: investment expenses		(307,056	)		(304,480	)		(262,377	)
Net investment income before IMR amortization		3,028,217			2,667,335			2,516,127
IMR amortization		(41,278	)		(19,614	)		5,040
Net investment income including IMR amortization	$	2,986,939		$	2,647,721		$	2,521,167

There were no amounts excluded from investment income for bonds where collection of interest was uncertain at December 31, 2025, 2024 and 2023.

The Company did not have any due and accrued amounts over 90 days past due to exclude from capital and surplus at December 31, 2025, 2024 and 2023.

The cumulative amounts of paid-in-kind (PIK) interest included in the current principal balance is $187,440 as of December 31, 2025. The cumulative amounts of paid-in-kind (PIK) interest included in the current principal balance is $87,317 as of December 31, 2024.

Realized gains and losses, net of amounts transferred to the IMR and federal income tax, are as follows:

	Year Ended December 31,
	2025			2024			2023
Realized gains (losses)
Bonds and stock	$	(99,831	)	$	(206,660	)	$	(52,741	)
Derivatives		245,424			182,481			(106,925	)
Mortgage loans		(20,154	)		(187,612	)		(25,367	)
Other invested assets		(69,147	)		9,744			159,252
Cash, cash equivalents and short-term investments		(2,221	)		940			—
Total realized (losses) gains on investments		54,071			(201,107	)		(25,782	)
Less amount transferred to IMR (net of related taxes of of ($22,530) in 2025, ($47,830) in 2024, and $5,946 in 2023)		(84,758	)		(179,933	)		22,368
Total realized gains (losses) on investments		138,829			(21,174	)		(48,149	)
Federal income tax expense		13,822			(20,634	)		44,501
Net realized gains (losses), less amount transferred to IMR	$	125,007		$	(540	)	$	(92,651	)

The change in unrealized gains and losses on investments recorded in unassigned surplus is as follows:

	Year Ended December 31, 2025						Year Ended December 31, 2024
	Unrealized Capital Gain (Loss)			Foreign Exchange Unrealized Capital Gain (Loss)			Unrealized Capital Gain (Loss)			Foreign Exchange Unrealized Capital Gain (Loss)
Bonds	$	(3,881	)	$	170,976		$	(6,435	)	$	(84,959	)
Common stocks		(1,637	)		—			1,211			—
Preferred stocks		(12,050	)		—			(7,987	)		—
Derivative instruments		347,476			(305,186	)		(79,998	)		136,859
Cash and cash equivalents		—			(769	)		—			(149	)
Other invested assets		(45,747	)		27,041			(1,912	)		(10,166	)
Mortgage loans		(24,541	)		157,729			(15,691	)		(56,275	)
Total change in unrealized gains and losses		259,620			49,791			(110,812	)		(14,690	)
Capital gains tax expense (benefit)		(62,700	)		—			3,344			—
Change in unrealized gains and losses, net of taxes	$	196,920		$	49,791		$	(107,468	)	$	(14,690	)

The Company employs a systematic methodology to evaluate declines in fair values below amortized cost for all investments. The Company evaluates: the ability and intent to hold the investment to maturity, the issuer's overall financial condition, the issuer's credit and financial strength ratings, the issuer's financial performance including earnings trends, dividend payments, and asset quality. A weakening of the general market conditions in the industry or geographic region in which the issuer operates, the length of time in which the fair value of an issuer's securities remains below cost, and with respect to fixed maturity investments, any factors that might raise doubt about the issuer's ability to pay all amounts due according to the contractual terms. The Company applies these factors to all securities, as necessary.

The Company recognized OTTI charges on invested assets of $27,849 and $161,579 during 2025 and 2024, respectively.

As of December 31, 2025, 2024 and 2023, the Company had no loan-backed and structured securities where the present value of cash flows expected to be less than amortized cost.

The following is the aggregate amount of unrealized losses and related fair value of impaired loan-backed and structured securities (the fair value is less than cost or amortized cost) for which an other-than-temporary impairment has not been recognized in earnings as a realized loss as of December 31, 2025 and 2024:

	December 31, 2025
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Loan-Backed and Structured Securities	$	5,882,502	$	(191,160	)	$	3,498,620	$	(244,764	)	$	9,381,122	$	(435,924	)
	December 31, 2024
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Loan-Backed and Structured Securities	$	6,403,687	$	(383,558	)	$	4,412,094	$	(351,568	)	$	10,815,781	$	(735,126	)

The Company receives certain amounts of prepayment and acceleration fees as shown below:

	General Account
1. Number of CUSIPS		8
2. Aggregate Amount of Investment Income	$	1,407

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of a financial instrument is the amount 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 (the exit price). The fair value hierarchy under SSAP No. 100 prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy are described below:

Basis of Fair Value Measurement

Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities

Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Summary of Fair Value Methodologies

The following methods and assumptions were used by the Company in estimating fair value for financial instruments:

Bonds, preferred stock and common stock — Fair values are based on quoted market prices. If quoted market prices are not available, fair values are estimated using independent pricing sources or internally developed pricing models using discounted cash flow analyses, which utilize current interest rates for similar financial instruments having comparable terms and credit. Bonds rated a 6 in accordance with the P&P Manual of the NAIC CMIAO are carried at the lower of amortized cost or fair value.

Cash, cash equivalents, and short-term investments — For these investments, the carrying amounts reported in the Statements of Admitted Assets, Liabilities, Capital and Surplus approximate fair value.

Mortgage loans — The fair value of mortgage loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Derivatives — The Company values the OTC options utilizing the Black-Scholes models implemented in the SunGard derivative system with index marks updated daily. The Company's OTC equity options trade in liquid markets, resulting in calculations that do not involve significant management judgment and valuations that generally can be verified. The Company also compares the derivative valuations to the daily counterparty marks to validate the model outputs. Such instruments are typically classified within Level 2 of the fair value hierarchy maturities.

Policy and contract liabilities — Fair values of the Company's liabilities under contracts not involving significant mortality or morbidity risks (principally, annuities and supplementary contracts) are stated at the cost the Company would incur to extinguish the liability (i.e., the cash surrender value).

Separate accounts — The estimated fair value of assets held in separate accounts is based on quoted market prices. Separate account assets representing contract holder funds are measured at fair value and reported as a summary total in the Statements of Admitted Assets, Liabilities, Capital and Surplus, with an equivalent summary total reported for related liabilities. Based on the level of observable activity, these assets will be measured at level 1.

Financial Instruments Held at Fair Value

As of December 31, 2025 and 2024, the assets carried at fair value were unaffiliated common stock and derivative instruments on a recurring basis. The following table presents, by level within the fair value hierarchy, financial assets and liabilities held at fair value.

	December 31, 2025
	Level 1			Level 2		Level 3		Total
Financial Assets
Common stock	$	10,572		$	—	$	6,750	$	17,322
Derivative assets		(919	)		1,682,262		—		1,681,343
Preferred stock		—			170,028		23,354		193,382
Total assets at fair value	$	9,653		$	1,852,290	$	30,104	$	1,892,047
Financial Liabilities
Derivative liabilities		(481	)		21,405				20,924
Total liabilities at fair value	$	(481	)	$	21,405	$	—	$	20,924
	December 31, 2024
	Level 1			Level 2		Level 3		Total
Financial Assets
Common stock	$	—		$	—	$	10,535	$	10,535
Derivative assets		1,142			1,065,053				1,066,195
Preferred stock		20,914			—		44,368		65,282
Total assets at fair value	$	22,056		$	1,065,053	$	54,903	$	1,142,012
Financial Liabilities
Derivative liabilities		(2,898	)		12,756		—		9,858
Total liabilities at fair value	$	(2,898	)	$	12,756	$	—	$	9,858

Transfers into or out of Level 3

Overall, transfers into and/or out of Level 3 are attributable to a change in the observability of inputs. Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Transfers into and/or out of any level are assumed to occur at the beginning of the period.

The Company had $30,104 and $54,903 of Level 3 financial assets or liabilities carried at fair value for the year ended December 31, 2025 and 2024.

	Beginning Balance at 01/01/2025		Transfers into Level 3		Transfers out of Level 3		Total gains and (losses) included in Net Income		Total gains and (losses) included in Surplus			Purchases		Issuances		Sales			Settlements		Ending Balance at 12/31/2025
Assets
Common Stock	$	10,534	$	—	$	—	$	8,419	$	(2,084	)	$	—	$	—	$	(10,119	)	$	—	$	6,750
Preferred Stock		44,369		—		—		12,346		(15,693	)		2,949		—		(20,617	)		—		23,354
Total Assets	$	54,903	$	—	$	—	$	20,765	$	(17,777	)	$	2,949	$	—	$	(30,736	)	$	—	$	30,104
	Beginning Balance at 01/01/2024		Transfers into Level 3		Transfers out of Level 3		Total gains and (losses) included in Net Income		Total gains and (losses) included in Surplus			Purchases		Issuances		Sales			Settlements		Ending Balance at 12/31/2024
Assets
Common Stock	$	9,323	$	—	$	—	$	—	$	1,211		$	—	$	—	$	—		$	—	$	10,534
Preferred Stock		53,270		—		—		—		(8,901	)		—		—		—			—		44,369
Total Assets	$	62,593	$	—	$	—	$	—	$	(7,690	)	$	—	$	—	$	—		$	—	$	54,903

Fair Value of All Financial Instruments

The aggregate fair value of the Company's financial instruments and the level within the fair value hierarchy in which the fair value measurements fall, together with the related admitted values, are presented in the following tables. Pursuant to SSAP No. 100R, insurance contracts have been excluded.

December 31, 2025

Aggregate
Fair Value

Admitted
Assets

Level 1

Level 2

Level 3

Net
Asset
Value
(NAV)*

Financial Assets

Bonds

35,158,352

35,916,031

78,466

19,335,016

15,744,870

—

Common stock

110,248

110,247

10,572

—

99,676

—

Preferred stock

193,382

191,152

—

170,028

23,354

—

Other invested assets
(excluding derivatives)

2,932,650

3,330,418

—

19,954

2,328,234

584,462

Short-term investments

6,405

5,811

—

510

5,895

—

Real Estate

27,578

26,627

—

27,578

Cash and cash equivalents

1,590,415

1,590,414

1,589,840

575

—

Derivative assets

1,598,409

1,769,651

(919

)

1,599,328

—

Mortgage loans

21,285,623

21,920,396

—

21,285,623

—

Policy loans

2,822

—

2,822

—

Financial Liabilities

Derivative liabilities

96,623

15,811

(480

)

97,103

—

December 31, 2024	Aggregate Fair Value		Admitted Assets		Level 1			Level 2		Level 3		Net Asset Value (NAV)*
Financial Assets
Bonds	$	26,555,887	$	28,029,298	$	—		$	15,787,995	$	10,767,892		—
Common stock		89,960		89,960		—			—		89,960		—
Preferred stock		65,282		65,283		—			20,914		44,368		—
Other invested assets (excluding derivatives)		2,143,283		2,354,056		162,342			2,186		1,978,755		572,254
Short-term investments		482,905		482,937		—			50,914		431,991		—
Real Estate		24,687		24,687		—			—		24,687		—
Cash and cash equivalents		1,128,190		1,128,190		1,128,190			—		—		—
Derivative assets		1,066,195		1,066,195		1,142			1,065,053		—		—
Mortgage loans		20,044,043		21,030,120		—			—		20,044,043		—
Policy loans		3,160		3,160		—			—		3,160		—
Financial Liabilities
Derivative liabilities		9,858		9,858		(2,898	)		12,756		—		—

* Investments measured at net asset value per share as a practical expedient. These fund investments have strategies primarily focused on real assets (primarily real estate) or other investments and are subject to certain restrictions on redemption.

Financial Instruments Held at Carrying Value

The following is the estimated fair values of financial instruments held at carrying values:

	December 31,
	2025				2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Bonds	$	35,916,031	$	35,158,352	$	28,029,298	$	26,555,887
Common stock-unaffiliated		110,247		110,247		89,960		89,960
Preferred stocks		191,152		193,382		65,283		65,283
Mortgage loans		21,920,396		21,285,623		21,030,120		20,215,229
Cash, cash equivalents and short-term investments		1,596,225		1,596,819		1,611,126		1,611,095
Real Estate		26,627		27,578		24,687		24,687
Other invested assets, excluding derivatives		3,330,418		2,934,805		2,354,056		2,143,283
Policy loans		2,822		2,822		3,160		3,160
Total	$	63,093,918	$	61,309,628	$	53,207,690	$	50,708,584

6. FEDERAL HOME LOAN BANK

The Company is a member of the Federal Home Loan Bank (FHLB) of Indianapolis. Through its membership, the Company has issued funding agreements to the FHLB Indianapolis in exchange for cash advances in the amount of $1,632,656 and $1,568,348 as of December 31, 2025 and 2024, respectively. The Company uses these funds in an investment spread strategy, consistent with its other investment spread operations. As such, the Company applies SSAP No. 52, Deposit-Type Contracts (SSAP No. 52), accounting treatment to these funds, consistent with its other deposit-type contracts. It is not part of the Company's strategy to utilize these funds for operations, and any funds obtained from the FHLB Indianapolis for use in general operations would be accounted for consistent with SSAP No. 15, Debt and Holding Company Obligations (SSAP No. 15), as borrowed money.

The table below indicates the amount of FHLB Indianapolis stock purchased, collateral pledged, assets and liabilities related to the agreement with FHLB Indianapolis.

	December 31, 2025		December 31, 2024
FHLB stock purchased/owned as part of the agreement:
Membership stock — class B	$	5,000	$	5,000
Activity stock		68,329		65,425
Excess stock		19,596		9,000
Aggregate total		92,925		79,425
Collateral pledged to the FHLB:
As of the reporting date and maximum during the reporting period		5,763,599		3,286,717
Funding capacity currently available		4,507,790		2,238,000
Total reserves related to the funding agreement		1,632,656		1,568,348
Agreement assets and liabilities
General account assets		92,925		79,425
General account liabilities		1,632,656		1,568,348

The Company invested in Class B of membership stock which is not eligible for redemption. The maximum amount of aggregate borrowings from FHLB at any time during 2025 and 2024, the actual or estimated borrowing capacity as determined by the Company in accordance with current and potential acquisitions of FHLB stock, amounts to $4,507,790 and $2,238,000, respectively.

7. FEDERAL INCOME TAXES

Components of Net Deferred Tax Asset/ (Liability)

The net deferred tax asset/liability at December 31, 2025 and 2024 and the change is comprised of the following components:

	December 31, 2025
	Ordinary		Capital		Total
Gross deferred tax assets	$	553,925	$	162,952	$	716,877
Statutory valuation allowance adjustments		—		—		—
Adjusted gross deferred tax assets		553,925		162,952		716,877
Deferred tax assets nonadmitted		—		—		—
Subtotal net admitted deferred tax asset		553,925		162,952		716,877
Gross deferred tax liabilities		128,699		62,407		191,106
Net admitted deferred tax asset / (liability)	$	425,226	$	100,545	$	525,771
	December 31, 2024
	Ordinary		Capital		Total
Gross deferred tax assets	$	505,359	$	96,444	$	601,803
Statutory valuation allowance adjustments		—		—		—
Adjusted gross deferred tax assets		505,359		96,444		601,803
Deferred tax assets nonadmitted		—		—		—
Subtotal net admitted deferred tax asset		505,359		96,444		601,803
Gross deferred tax liabilities		126,440		17,591		144,031
Net admitted deferred tax asset / (liability)	$	378,919	$	78,853	$	457,772

	Change
	Ordinary		Capital		Total
Gross deferred tax assets	$	48,566	$	66,508	$	115,074
Statutory valuation allowance adjustments		—		—		—
Adjusted gross deferred tax assets		48,566		66,508		115,074
Deferred tax assets nonadmitted		—		—		—
Subtotal net admitted deferred tax asset		48,566		66,508		115,074
Gross deferred tax liabilities		2,259		44,816		47,075
Net admitted deferred tax asset / (liability)	$	46,307	$	21,692	$	67,999

The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which the temporary differences are deductible and prior to the expiration of capital loss, net operating loss, and tax credit carryforwards. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected taxable income, and tax planning strategies in making this assessment. Management believes it is more likely than not that all deferred tax assets will be realized based on projected taxable income and available tax planning strategies.

Components of Admission Calculation

The admission calculation components under SSAP No. 101 are as follows:

	December 31, 2025
	Ordinary		Capital		Total
Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	$	—	$	—
Adjusted gross deferred tax assets expected to be realized (excluding threshold limitation)		514,822		100,545		615,367
Adjusted gross deferred tax assets expected to be realized following the balance sheet date		489,482		100,545		590,027
Adjusted gross deferred tax assets allowed per limitation		—		—		615,066
Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from above) offset by gross deferred tax liabilities		39,103		62,407		101,510
Deferred tax assets admitted as the result of application of SSAP No. 101	$	553,925	$	162,952	$	716,877
	December 31, 2024
	Ordinary		Capital		Total
Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	$	—	$	—
Adjusted gross deferred tax assets expected to be realized (excluding threshold limitation)		373,481		86,956		460,437
Adjusted gross deferred tax assets expected to be realized following the balance sheet date		373,481		86,956		460,437
Adjusted gross deferred tax assets allowed per limitation		—		—		534,677
Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from above) offset by gross deferred tax liabilities		131,879		9,488		141,367
Deferred tax assets admitted as the result of application of SSAP No. 101	$	505,360	$	96,444	$	601,804

	Change
	Ordinary			Capital		Total
Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		$	—	$	—
Adjusted gross deferred tax assets expected to be realized (excluding threshold limitation)		141,341			13,589		154,930
Adjusted gross deferred tax assets expected to be realized following the balance sheet date		116,001			13,589		129,590
Adjusted gross deferred tax assets allowed per limitation		—			—		80,389
Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from above) offset by gross deferred tax liabilities		(92,776	)		52,919		(39,857	)
Deferred tax assets admitted as the result of application of SSAP No. 101	$	48,565		$	66,508	$	115,073

Other Admissibility Criteria

	December 31,
	2025			2024
Ratio Percentage Used To Determine Recovery Period		793	%		773	%
Ratio percentage used to determine recovery period and threshold limitation amount	$	5,254,908		$	4,436,180

Impact of Tax Planning Strategies

	December 31, 2025
	Ordinary			Capital			Total
Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage
Adjusted gross DTAs	$	553,925		$	162,952		$	716,877
Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.		62	%		62	%		62	%
Net admitted adjusted gross DTAs		553,925			162,952			716,877
Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies		62	%		62	%		62	%
	December 31, 2024
	Ordinary			Capital			Total
Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage
Adjusted gross DTAs	$	505,359		$	96,444		$	601,803
Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.		41	%		90	%		49	%
Net admitted adjusted gross DTAs		505,359			96,444			601,803
Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies		41	%		90	%		49	%

	Change
	Ordinary			Capital			Total
Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage
Adjusted gross DTAs	$	48,566		$	66,508		$	115,074
Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.		21	%		(29	)%		13	%
Net admitted adjusted gross DTAs		48,566			66,508			115,074
Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies		21	%		(28	)%		13	%

There are no temporary differences for which deferred tax liabilities are not recognized.

Current Tax Expense and Change in Deferred Tax

Current income taxes incurred consist of the following categories:

	2025		2024			Change
Federal income tax expense (benefit) on operations	$	281,421	$	(207,188	)	$	488,609
Federal income tax on net capital gains		13,822		(20,634	)		34,456
Current year income tax expense	$	295,243	$	(227,822	)	$	523,065

The main components of the deferred tax amounts from book/tax differences are as follows:

	December 31
	2025		2024		Change
Deferred tax assets
Policyholder reserves	$	352,353	$	311,596	$	40,757
Investments		—		15,305		(15,305	)
Deferred acquisition costs		192,395		160,408		31,987
Receivables — nonadmitted		6,913		10,098		(3,185	)
Other		2,264		7,952		(5,688	)
		553,925		505,359		48,566
Nonadmitted		—		—		—
Admitted ordinary deferred tax asset		553,925		505,359		48,566
Capital
Investments		68,077		77,351		(9,274	)
Net capital loss carry-forward		94,875		19,093		75,782
		162,952		96,444		66,508
Nonadmitted		—		—		—
Admitted capital deferred tax asset		162,952		96,444		66,508
Admitted deferred tax asset	$	716,877	$	601,803	$	115,074
Deferred tax liabilities
Investments	$	114,172	$	104,332	$	9,840
Deferred and uncollected premiums		10,324		6,778		3,546
Policyholder reserves		3,966		15,330		(11,364	)
Other		237		—		237
		128,699		126,440		2,259
Capital		62,407		17,591		44,816
Deferred tax liabilities		191,106		144,031		47,075
Net deferred tax assets	$	525,771	$	457,772	$	67,999

The change in deferred income taxes reported in surplus before consideration of non-admitted assets is comprised of the following components:

	December 31, 2025												December 31, 2024
	Ordinary			Capital			Total			Ordinary			Capital			Total			Change
Total deferred tax assets (admitted and nonadmitted)	$	553,925		$	162,952		$	716,877		$	505,359		$	96,444		$	601,803		$	115,074
Total deferred tax liabilities		(128,699	)		(62,407	)		(191,106	)		(126,440	)		(17,591	)		(144,031	)		(47,075	)
Net deferred tax assets / (liabilities)	$	425,226		$	100,545		$	525,771		$	378,919		$	78,853		$	457,772		$	67,999
Tax effect of unrealized (gain) / losses																				62,700
Tax effect of balance sheet only adjustments																				214,639
Change in net deferred income tax																			$	345,338

Reconciliation of Federal Income Tax Rate to Actual Rate

The significant items causing a difference between the statutory federal income tax rate and the Company's effective income tax rate are as follows:

December 31, 2025

Amount

Tax Effect

Effective Rate

Provision computed at statutory rate

(224,982

)

(47,246

)

21.0

Amortization of interest maintenance reserve

(25,614

)

(5,379

)

2.4

Other permanent adjustments

(62,757

)

(13,179

)

5.9

Tax on non-admitted assets

15,167

3,185

(1.4

Prior year tax returns adjustments

(54,610

)

(11,468

)

5.1

Tax credits

95,752

20,108

(8.9

DREs

74,643

15,675

(7.0

Ceding commissions

(68,857

)

(14,460

)

6.4

Subpart F Income/(Loss)

17,348

3,643

(1.6

Other net

(4,638

)

(974

)

0.4

Total income taxes

(238,548

)

(50,095

)

22.3

Federal income tax expense

281,421

(125.1

Realized capital gains (losses) tax

13,822

(6.1

Change in net deferred income taxes

(345,338

)

153.5

Total federal income taxes

(50,095

)

22.3

	December 31, 2024
	Amount			Tax Effect			Effective Rate
Provision computed at statutory rate	$	(102,601	)	$	(21,546	)		21.0	%
Amortization of interest maintenance reserve		(112,514	)		(23,628	)		23.0	%
Other permanent adjustments		(17,086	)		(3,588	)		3.5	%
Tax on non-admitted assets		6,867			1,442			(1.4	)%
Prior year tax returns adjustments		(4,543	)		(954	)		0.9	%
Tax credits		(142,324	)		(29,888	)		29.1	%
DREs		(100,157	)		(21,033	)		20.5	%
Ceding commissions		211,214			44,355			(43.2	)%
Subpart F Income/(Loss)		6,338			1,331			(1.3	)%
Other net		(10,948	)		(2,299	)		2.2	%
Total income taxes	$	(265,754	)	$	(55,808	)		54.4	%
Federal income tax expense					(207,188	)		201.9	%
Realized capital gains (losses) tax					(20,634	)		20.1	%
Change in net deferred income taxes					172,014			(167.7	)%
Total federal income taxes				$	(55,808	)		54.4	%

As a result of tax reform ("Tax Cuts and Jobs Act, effective in 2018") the Company can no longer carry back future net operating losses (capital losses are still eligible for carry back), therefore there are no available taxes for recoupment.

At December 31, 2025, the Company has $452M of capital loss carryforwards and no operating loss foreign tax credit or any business credit carry-forwards. At December 31, 2025, the Company had no deposits admitted under IRC Section 6603.

The Company will file in a consolidated life/non-life federal income tax return with its parent, Global Atlantic Limited (Delaware), and its affiliates. The Company is a party to a written agreement, approved by the Company's Board of Directors, which sets forth the manner in which the total combined federal income tax is allocated to each entity within the consolidated group.

The IRS routinely audits the Company's federal income tax returns, and when appropriate, provisions are made in the financial statements in anticipation of the results of these audits. The Company believes that its income tax filing positions and deductions will be sustained on audit, and does not anticipate any adjustments that will result in a material, adverse effect on the Company's financial condition, results of operations, or cash flow. Therefore, no reasonable estimate can be made for tax loss contingencies and none has been recorded.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits as a component of its income tax provision. As of December 31, 2025 and 2024, the Company has no amounts accrued for the payment of interest and penalties, which does not include the federal tax benefit of interest deductions, where applicable. The Company had no unrecognized tax benefits as of December 31, 2025 and 2024.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2020. The Company has no tax positions for which it believes it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months.

In June 2007, the Financial Accounting Standard Board (FASB) issued FASB interpretation (FIN) No. 48, According for Uncertainty in Income Taxes (FIN No. 48). The NAIC is still evaluating the applicability of FIN No. 48 to Statutory Financial Reporting. The Company continues to recognize tax benefits and related reserves in accordance with SSAP No. 5R, Liabilities, Contingencies and Impairments of Assets (SSAP No. 5R). The Company believes that its income tax filing positions and deductions will be sustained in audit, and does not anticipate any adjustments that will results in a material, adverse effect on the Company's financial condition, results of operations, or cash flow. Therefore, no contingent tax liabilities have been recorded pursuant to SSAP No. 5R as modified by SSAP No. 101.

On August 16, 2022, the Inflation Reduction Act (the "IRA") was signed into law. The IRA enacted a new 15% corporate minimum tax ("CAMT") on the "adjusted financial statement income" of certain large corporations, which became effective on January 1, 2023. As required under the authoritative guidance of ASC 740, Income Taxes, we reviewed the impact on income taxes due to the change sin legislation and concluded there was no material impact to the financial statements for the years ended December 31, 2025 and 2024.

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law. We have evaluated the impact on income taxes due to the change in legislation and concluded there was no material impact to the financial statements for the year ended December 31, 2025.

8. REINSURANCE

The Company seeks to diversify risk and limit its overall financial exposure by reinsuring certain levels of risk in various areas of exposure through acquisition and cessions with other insurance companies or reinsurers. In addition, consistent with the overall business strategy, the Company assumes certain policy risks written by other insurance companies on a coinsurance basis and modified coinsurance basis. Under a coinsurance arrangement, depending upon the terms of the contract, the reinsurer may share in the risk of loss due to mortality or morbidity, lapses, and the investment risk, if any, inherent in the underlying policy. Modified coinsurance and funds withheld coinsurance differ from coinsurance in that the ceding company retains the assets supporting the reserves while the risk is transferred to the reinsurer.

The Company assumes certain preneed life insurance policies from one non-affiliated company. This block of assumed business is in run-off. As of December 31, 2025 and 2024, FLIC assumed $16,657 and $18,052 of reserves. The Company accounts for its assumed reinsurance business on a basis consistent with those used in accounting for the original policies issued.

The Company assumes on a modified coinsurance (Modco) basis certain preneed life insurance policies from one non-affiliated company. This block of assumed business is in run-off. As of December 31, 2025 and 2024, FLIC assumed $223,410 and $230,817 of Modco reserves. The Company accounts for its assumed reinsurance business on a basis consistent with those used in accounting for the original policies issued.

Effective May 13, 2024, the Company entered into a coinsurance agreement with Commonwealth Annuity and Life Insurance Company whereby it ceded funding agreements. As of December 31, 2025 and 2024, the total accumulated ceded reserves were $4,541,454 and $3,875,282.

Effective December 31, 2024, the Company entered into a reinsurance agreement with a non-affiliated party on a coinsurance basis. As of December 31, 2025 and 2024, the total accumulated ceded reserves were $400,667 and $274,424.

Effective July 1, 2025, the Company entered into a coinsurance agreement with Global Atlantic Re Limited whereby it ceded funding agreements. The total accumulated ceded reserves were $1,947,396 as of December 31, 2025.

Reinsurance assumed for the years ended December 31, is as follows:

	December 31,
	2025		2024		2023
Reinsurance premiums assumed — non-affiliated	$	122	$	112	$	382
Reserves assumed — non-affiliated		16,657		18,052		19,400
Modco reserves assumed — non-affiliated		223,410		230,817		230,646

Reinsurance ceded for years ended December 31, is as follows:

	December 31,
	2025		2024		2023
Reinsurance premiums ceded — affiliated	$	4,893,342	$	6,326,874	$	4,910,069
Reinsurance premiums ceded — non-affiliated		82,488		291,632		19,198
Reserves ceded — affiliated		34,462,127		29,578,476		22,459,709
Reserves ceded — non-affiliated		400,667		274,424		—
Modco reserves ceded — affiliated		2,054,172		2,228,329		2,419,343
Contract claims unpaid ceded — affiliated		5,683		5,366		6,123
Contract claims unpaid ceded — non-affiliated		1,609		1,410		1,413

The effects of reinsurance premiums for the years ended December 31, were as follows:

	December 31,
	2025		2024		2023
Direct	$	13,364,922	$	15,411,578	$	11,427,886
Reinsurance assumed — non-affiliated		122		112		382
Less: Reinsurance ceded — affiliated		4,893,342		6,326,874		4,910,069
Less: Reinsurance ceded — non-affiliated		82,488		291,632		19,198
Net premiums	$	8,389,214	$	8,793,184	$	6,499,001

In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by ceding certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers

Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company; consequently, allowances are established for amounts deemed uncollectible. The Company determines the appropriate amount of reinsurance based on evaluation of the risks accepted and analyses prepared by consultants and reinsurers and on market conditions (including the availability and pricing of reinsurance). The Company also believes that the terms of its reinsurance contracts are consistent with industry practice in that they contain standard terms with respect to lines of business covered, limit and retention, arbitration and occurrence. Based on the Company's review of its reinsurers' financial statements and reputations in the reinsurance marketplace, the Company believes that its reinsurers are financially sound and there was no allowance for uncollectible amounts as of December 31, 2025 and 2024.

9. PREMIUMS AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED

Deferred and uncollected life insurance premiums represent annual or fractional premiums, either due and uncollected or not yet due, where policy reserves have been provided on the assumption that the full life insurance premium for the current policy year has been collected. Gross premiums as represented below are net of reinsurance. Loading is the amount added to premiums to cover operating expenses. Net deferred and uncollected premiums represent only the portion of gross premiums related to mortality charges and interest.

As of December 31, 2025 and 2024, the Company had deferred and uncollected life insurance premiums (excluding accident and health) as follows:

	Year Ended December 31,
	2025										2024
	Gross		Loading		Net		Non- Admitted		Net Admitted		Gross		Loading		Net		Non- Admitted		Net Admitted
Ordinary new business	$	106,234	$	64,943	$	41,291	$	—	$	41,291	$	42,360	$	19,491	$	22,869	$	—	$	22,869
Ordinary renewal business		5,041		1,991		3,050		—		3,050		4,285		1,586		2,699		—		2,699
Group life		9,298		4,479		4,819		—		4,819		13,014		6,301		6,713		—		6,713
Total	$	120,573	$	71,413	$	49,160	$	—	$	49,160	$	59,659	$	27,378	$	32,281	$	—	$	32,281

10. ANNUITY RESERVES AND DEPOSIT LIABILITIES BY WITHDRAWAL CHARACTERISTICS

As of December 31, 2025, the Company's annuity reserves, supplementary contract reserves and deposit liabilities that are subject to discretionary withdrawal (without adjustment) and not subject to discretionary withdrawal provisions are summarized as follows:

Individual Annuities:

Year Ended December 31, 2025

General
Account

Separate Account
without Guarantees

Total

% of Total

Subject to discretionary withdrawal:

With fair value adjustment

29,861,582

2,167,946

32,029,528

48.7

At book value less current surrender
charge of 5% or more

26,247,163

14,756

26,261,919

40.0

Total with adjustment or at fair value

56,108,745

2,182,702

58,291,447

88.7

At book value without adjustment
(minimal or no charge adjustment)

5,289,072

1,816,006

7,105,078

10.8

Not subject to discretionary withdrawal:

335,806

—

335,806

0.5

Total (gross)

61,733,623

3,998,708

65,732,331

100.0

Less: reinsurance ceded

(26,791,260

)

—

(26,791,260

)

Total (net)

34,942,363

3,998,708

38,941,071

Group Annuities:

General
Account

Separate Account
without Guarantees

Total

% of Total

Subject to discretionary withdrawal:

With fair value adjustment

374,303

—

374,303

33.4

At book value less current surrender
charge of 5% or more

541,762

—

541,762

48.3

Total with adjustment or at fair value

916,065

—

916,065

81.7

At book value without adjustment
(minimal or no charge adjustment)

205,409

—

205,409

18.3

Not subject to discretionary withdrawal:

—

Total (gross)

1,121,474

—

1,121,474

100.0

Less: reinsurance ceded

(373,999

)

—

(373,999

)

Total (net)

747,475

—

747,475

Total Deposit-type Contracts:

General
Account

Separate Account
without Guarantees

Total

% of Total

Subject to discretionary withdrawal:

With fair value adjustment

—

At book value less current surrender
charge of 5% or more

—

Total with adjustment or at fair value

—

At book value without adjustment
(minimal or no charge adjustment)

—

Not subject to discretionary withdrawal:

12,403,261

—

12,403,261

100.0

Total (gross)

12,403,261

—

12,403,261

100.0

Less: reinsurance ceded

(6,494,587

)

—

(6,494,587

)

Total (net)

5,908,674

—

5,908,674

Year Ended December 31, 2025

General
Account

Separate Account
without Guarantees

Total

Reconciliation of total annuity actuarial reserves and deposit
fund liabilities amounts:

Life, accident & health, and supplemental contracts with
life contingencies

41,598,512

—

41,598,512

Separate Accounts

—

3,998,708

Total annuity actuarial reserves and deposit liabilities

41,598,512

3,998,708

45,597,220

As of December 31, 2025, the Company's life reserves, that are subject to discretionary withdrawal (without adjustment) and not subject to discretionary withdrawal provisions are summarized as follows:

	Year Ended December 31, 2025
	General Account
	Account Value		Cash Value			Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Other permanent cash value life insurance	$	—	$	3,097,096		$	3,194,068
Miscellaneous reserves		—		—			14,545
Total (gross)		—		3,097,096			3,208,613
Less: reinsurance ceded		—		(1,154,031	)		(1,202,949	)
Total (net)	$	—	$	1,943,065		$	2,005,664
	Year Ended December 31, 2025
	General Account		Separate Account without Guarantees			Total
Reconciliation of total life & accident & health reserves:
Life insurance reserves	$	1,997,661	$	—		$	1,997,661
Accidental death benefit reserves		1		—			1
Disabled lives reserves		2		—			2
Miscellaneous reserves		8,000		—			8,000
Total life and accident & health reserves	$	2,005,664	$	—		$	2,005,664

As of December 31, 2024, the Company's annuity reserves, supplementary contract reserves and deposit liabilities that are subject to discretionary withdrawal (without adjustment) and not subject to discretionary withdrawal provisions are summarized as follows:

Individual Annuities:

	Year Ended December 31, 2024
	General Account			Separate Account without Guarantees		Total			% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	25,593,369		$	752,933	$	26,346,302			44.9	%
At book value less current surrender charge of 5% or more		24,761,966			15,395		24,777,361			42.2	%
Total with adjustment or at fair value		50,355,335			768,328		51,123,663			87.1	%
At book value without adjustment (minimal or no charge adjustment)		5,343,885			1,982,116		7,326,001			12.5	%
Not subject to discretionary withdrawal:		262,897			—		262,897			0.4	%
Total (gross)		55,962,117			2,750,444		58,712,561			100.0	%
Less: reinsurance ceded		(24,257,948	)		—		(24,257,948	)
Total (net)	$	31,704,169		$	2,750,444	$	34,454,613

Group Annuities:

	General Account			Separate Account without Guarantees		Total			% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	370,818		$	—	$	370,818			26.1	%
At book value less current surrender charge of 5% or more		820,885			—		820,885			57.7	%
Total with adjustment or at fair value		1,191,703			—		1,191,703			83.8	%
At book value without adjustment (minimal or no charge adjustment)		230,726			—		230,726			16.2	%
Not subject to discretionary withdrawal:		—			—		—			—	%
Total (gross)		1,422,429			—		1,422,429			100.0	%
Less: reinsurance ceded		(516,846	)		—		(516,846	)
Total (net)	$	905,583		$	—	$	905,583

Total Deposit-type Contracts:

	General Account			Separate Account without Guarantees		Total			% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	—		$	—	$	—			—	%
At book value less current surrender charge of 5% or more		—			—		—			—	%
Total with adjustment or at fair value		—			—		—			—	%
At book value without adjustment (minimal or no charge adjustment)		—			—		—			—	%
Not subject to discretionary withdrawal:		7,188,690			—		7,188,690			100.0	%
Total (gross)		7,188,690			—		7,188,690			100.0	%
Less: reinsurance ceded		(3,881,176	)		—		(3,881,176	)
Total (net)	$	3,307,514		$	—	$	3,307,514

	Year Ended December 31, 2024
	General Account		Separate Account without Guarantees		Total
Reconciliation of total annuity actuarial reserves and deposit fund liabilities amounts:
Life, accident & health, and supplemental contracts with life contingencies	$	35,917,266	$	—	$	35,917,266
Separate Accounts		—		2,750,444		2,750,444
Total annuity actuarial reserves and deposit liabilities	$	35,917,266	$	2,750,444	$	38,667,710

As of December 31, 2024, the Company's life reserves, that are subject to discretionary withdrawal (without adjustment) and not subject to discretionary withdrawal provisions are summarized as follows:

	Year Ended December 31, 2024
	General Account
	Account Value		Cash Value			Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Other permanent cash value life insurance	$	—	$	2,678,431		$	2,782,051
Miscellaneous reserves		—		—			9,091
Total (gross)		—		2,678,431			2,791,142
Less: reinsurance ceded		—		(1,142,281	)		(1,192,839	)
Total (net)	$	—	$	1,536,150		$	1,598,303
	Year Ended December 31, 2024
	General Account		Separate Account without Guarantees			Total
Reconciliation of total life & accident & health reserves:
Life insurance reserves	$	1,593,300	$	—		$	1,593,300
Accidental death benefit reserves		1		—			1
Disabled lives reserves		2		—			2
Miscellaneous reserves		5,000		—			5,000
Total life and accident & health reserves		1,598,303		—			1,598,303

11. CAPITAL AND SURPLUS AND DIVIDEND RESTRICTIONS

The maximum amount of ordinary dividends that can be paid during a 12-month period by life insurance companies domiciled in Indiana, without prior approval of the Insurance Commissioner, is the greater of 10% of capital and surplus (excluding special unassigned funds) on the most recent preceding annual statement or the net gain from operations on the most recent preceding annual statement. Likewise, a dividend from any source of money other than earned surplus / unassigned funds must be approved before the dividend is paid. The maximum ordinary dividend the Company can pay in 2026 is $462,821.

On July 17, 2025, the Company received a $650,000 cash contribution from Commonwealth Annuity.

On September 30, 2025, the Company recorded a deferred tax liability of ($11,575) related to the tax effect of the non cash investment capital contribution from Commonwealth Annuity.

On June 30, 2025, the Company received a $51,190 non cash investment capital contribution from Commonwealth Annuity.

On March 31, 2025, the Company received a $121,023 non cash investment capital contribution from Commonwealth Annuity.

On June 20, September 30, and December 23, 2024 the Company received $500,000, $400,000, and $175,000 cash contributions from Commonwealth Annuity.

On December 26, 2023, the Company received a $100,000 cash contribution from Commonwealth Annuity.

The Company's unassigned surplus was impacted by each item below as follows:

	December 31,
	2025			2024			2023
Unrealized gains (losses)	$	192,355		$	(4,565	)	$	102,903
Nonadmitted asset values		15,166			6,866			(47,289	)
Asset valuation reserves		(626,694	)		(413,896	)		(438,686	)

The Company must meet minimum capital and surplus requirements under a risk-based capital (RBC formula). RBC is the standard measurement of an insurance company's required capital on a statutory basis. It is based on a formula calculated by applying factors to various assets, premium, and statutory reserve items. The formula takes into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk and business risk. Regulatory action is tied to the amount of a company's surplus deficit under the RBC formula. Total adjusted capital for life insurance companies is defined as statutory capital and surplus, plus asset valuation reserve plus subsidiary asset valuation reserves, plus 50% of dividends apportioned for payment, plus 50% of subsidiary dividends apportioned for payment, and was $5,254,908 at December 31, 2025.

12. RELATED PARTY TRANSACTIONS

Service Agreements

The Company and its subsidiaries entered into a Service and Expense Agreement with Global Atlantic Financial Group Limited (GAFG) under which GAFG and affiliates agreed to provide personnel, management services, administrative support, the use of facilities and such other services as the parties may agree to from time to time. The agreement was filed with the Insurance department of the State of Indiana. The Company recognized $305,981, $286,667, and $314,386 in intercompany charges for 2025, 2024, and 2023 respectively.

On February 1 2021, the Company entered into an investment management agreement with Kohlberg Kravis Roberts & Co. L.P., a Delaware limited partnership and KKR subsidiary. The Company recorded expenses for these agreements of $173,691 and 151,718 as of December 31, 2025 and 2024, respectively.

Affiliated Investments

In 2022, the NAIC clarified that certain investments which are originated, sponsored or managed by affiliated entities shall be reported as affiliated investments even if the underlying assets are unrelated third party investments with no credit

exposure to affiliates. The Company holds investments of this type, which are included in total affiliated invested assets listed below:

	December 31,
	2025		2024
Bonds	$	12,051,717	$	9,819,128
Mortgages		3,072,442		2,849,160
Other Invested Assets		3,272,353		2,109,317
	$	18,396,512	$	14,777,605

Payable/Receivable from Affiliates

The Company reported a net receivable to parent, subsidiaries and affiliates of $2,537 and $17,761 as of December 31, 2025 and 2024, respectively. All intercompany balances shown as payable to or from parent, subsidiaries and affiliates are settled within 30 days of their incurrence under the terms of the intercompany expense sharing agreements.

The Company has funds withheld agreements with related parties. Amounts due to affiliates related to funds withheld agreements were $0 and $0 for the year ended December 31, 2025 and 2024, respectively. Amounts due from affiliates related to funds withheld agreements were $73,433 and $112,297 for the year ended December 31, 2025 and 2024, respectively. All intercompany balances related to funds withheld agreements are settled in the subsequent quarter.

13. COMMITMENTS AND CONTINGENCIES

Litigation

The Company is involved from time to time in judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of its business.

Given the inherent difficulty of predicting the outcome of the Company's litigation and regulatory matters, particularly in cases or proceedings in which substantial or indeterminate damages or fines are sought, the Company cannot estimate losses, or ranges of losses, for cases or proceedings where there is only a reasonable possibility that a loss may be incurred.

In connection with a cybersecurity incident on May 29, 2023, related to services provided to several companies by Pension Benefits Information LLC, and its use of MOVEit software ("PBI/MOVEit Incident"), The Global Atlantic Financial Group LLC or some of its affiliates have received a total of five putative class action complaints alleging failure to properly secure and safeguard customers' sensitive information. Four cases originated in United States District Court for the Southern District of New York: Clancy, Michael v. The Global Atlantic Financial Group LLC (1:23-cv-07975) filed September 8, 2023, Guzman, Marcelina v. The Global Atlantic Financial Group LLC (1:23-cv-08150) filed September 14, 2023, and Hendrix, Eudoice v. Global Atlantic Financial Company, Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, First Allmerica Financial Life Insurance Company and Forethought Life Insurance Company (1:23-cv-08058) filed September 12, 2023, and Bernstein, Michael v. The Global Atlantic Financial Group LLC (1:23-cv-9868) filed in New York state court September 15, 2023. A fifth case was filed in the United States District Court for the Southern District of Indiana, but subsequently was voluntarily dismissed: Hansa v. Forethought Life Insurance Company, Global Atlantic Insurance Network LLC, and The Global Atlantic Financial Group LLC (1:23-cv-01549) filed August 28, 2023. The Company itself is currently a party only in the Hendrix case. A judicial panel consolidated certain PBI/MOVEit Incident-related litigation in an MDL and transferred the cases to the District of Massachusetts, before Judge Allison Burroughs. This order applies to all matters against The Global Atlantic Financial Group LLC and its affiliates.

However, the Company believes that at the present time there are no pending or threatened lawsuits that are reasonably likely to have a material adverse effect on its financial position or results of operations.

Assessments

Unfavorable economic conditions may contribute to an increase in the number of insurance companies that are under regulatory supervision. This may result in an increase in mandatory assessments by state guaranty funds, or voluntary payments by solvent insurance companies to cover losses to policyholders of insolvent or rehabilitated companies. Mandatory assessments, which are subject to statutory limits, can be partially recovered through a reduction in future premium taxes in some states. The Company is not able to reasonably estimate the potential impact of any such future assessments or voluntary payments.

Commitments

The Company has certain contingent funding obligations related to development-stage renewable energy projects in the amount $322,230, as of December 31, 2025, with expiration dates occurring between March 2026 and September 2027. For accounting purposes, these contingent funding obligations are considered guarantees of the obligations of the development stage renewable energy projects.

The Company has an operational servicing agreement with a third party administrator for contract / policy administration. As of December 31, 2025, the purchase commitments relating to the agreement with the third party administrator were as follows:

2026	$	11,210
2027		3,994
2028		—
2029		—
2030		—
2031 and thereafter		—
Total	$	15,204

The Company has funding commitments subsequent to December 31, 2025 for the following:

Commercial mortgage loans and other lending facilities	$	483,036
Private equities		470
LIHTC partnerships		268
Limited partnerships		86,034
Collateral loans		—

14. SUBSEQUENT EVENTS

The Company has evaluated subsequent events from December 31, 2025 through March 20, 2026, the date that these financial statements were available to be issued, and determined that there are no Type — I Recognized or Type — II, Non Recognized subsequent events.

15. COMPOSITION OF OTHER ASSETS, LIABILITIES, INCOME AND EXPENSES

Other assets consist of the following:

	December 31,
	2025		2024
Admitted disallowed IMR	$	119,753	$	94,137
Guaranty funds		40,271		38,384
Unfunded Commitments		24,365		191
Intercompany receivable		2,537		17,761
Other miscellaneous assets		7,322		308
Total other assets	$	194,248	$	150,781

Other liabilities consist of the following:

	December 31,
	2025		2024
Payable for securities	$	359,482	$	23,947
Derivative collateral		1,614,880		1,059,286
Separate Account derivative liability		1,024,080		—
Remittances and items not allocated		117,724		165,434
Commission payables		16,376		13,935
Derivatives		15,811		9,858
Other miscellaneous liabilities		40,484		42,505
Total other liabilities	$	3,188,837	$	1,314,965

Other income consists of the following:

	December 31,
	2025			2024			2023
IMR adjustment on ceded gains (losses)	$	(17,863	)	$	(47,805	)	$	5,160
Other income on reinsurance ceded		50,035			57,043			(21,891	)
Other miscellaneous income		(167	)		(33	)		(77	)
Total other income	$	32,005		$	9,205		$	(16,808	)

Other expenses consist of the following:

	December 31,
	2025			2024			2023
Funds withheld net investment income ceded	$	656,373		$	538,936		$	457,632
Assumed modified coinsurance adjustments		(27,339	)		—			—
Funds withheld policy loan interest		126			54			136
FwH futures realized/unrealized (gains)/losses		148,068			(49,948	)		(57,113	)
Miscellaneous expense		944			1,102			1,208
Total other expenses	$	778,172		$	490,144		$	401,863

16. SEPARATE ACCOUNTS

The Company utilizes separate accounts to record and account for assets and liabilities for variable annuity transactions. In accordance with the products/transactions recorded within the separate account, assets are considered legally insulated. The legal insulation of the separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account.

As of December 31, 2025 and 2024, the Company's separate account statement included legally insulated assets of $1,833,202 and $2,002,153 respectively.

The assets legally insulated from the general account as of December 31, 2025 are attributed to the following products/transactions:

Product/Transaction	Legally Insulated Assets		Separate Account Assets (Not Legally Insulated)
ForeRetirement Variable Annuity	$	1,828,457	$	—
Huntington ForeRetirement Variable Annuity		4,745		—
Forethought Variable Interest Trust		—		2,335,415
Total	$	1,833,202	$	2,335,415

Separate account assets held by the Company relate to individual variable annuities of a non-guaranteed nature. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. Some variable annuities provide an incidental death benefit equal to the greater of the highest contract value on a certain date or premium paid and/or a lifetime withdrawal benefit as a portion of highest contract value on a certain date.

The maximum amount associated with death benefit guarantees for 2025 was $290,390 with associated risk charges paid by the separate account to compensate for these risks of $12,069. The maximum amount associated with withdrawal benefit guarantees for 2025 was $853,029 with associated risk charges paid by the separate account of $38,627.

The maximum amount associated with death benefit guarantees for 2024 was $367,044 with associated risk charges paid by the separate account to compensate for these risks of $13,024. The maximum amount associated with withdrawal benefit guarantees for 2024 was $897,243 with associated risk charges paid by the separate account of $43,090.

The maximum amount associated with death benefit guarantees for 2023 was $328,511 with associated risk charges paid by the separate account to compensate for these risks of $13,802. The maximum amount associated with withdrawal benefit guarantees for 2023 was $999,962 with associated risk charges paid by the separate account of $42,885.

Information regarding the Separate Accounts of the Company as of December 31, 2025 and 2024 is as follows:

	Non-Guaranteed Separate Accounts
	2025		2024
Premiums, considerations or deposits	$	1,354,984	$	626,307
Reserves for accounts with assets at:
Fair value		3,998,708		2,750,444
By withdrawal characteristics
With market value adjustment		2,167,946		752,932
At book value without market value adjustment and with current surrender charge of 5% or more		14,756		15,395
At book value without market value adjustment and with current surrender charge of less than 5%		1,816,006		1,982,117
Total	$	3,998,708	$	2,750,444

Reconciliation of net transfers to / (from) separate accounts as reported in the Statements of Operations for the year ended December 31, 2025, December 31, 2024, and December 31, 2023 is as follows:

	2025		2024		2023
Transfers to separate accounts	$	1,354,984	$	633,321	$	140,544
Transfers from separate accounts		304,806		361,681		304,425
Net transfers from separate accounts	$	1,050,178	$	271,640	$	(163,881	)
Reconciling adjustments:
Reinsurance		269,566		349,540		270,003
Transfers as reported in the Statements of Operations	$	1,319,744	$	621,180	$	106,122

Investment income earned
Bonds, term notes and loans	$	1,763,863
Preferred stocks (unaffiliated)		9,701
Preferred stocks (affiliated)		—
Common stocks (unaffiliated)		7,481
Common stocks (affiliated)		—
Mortgage loans		1,205,535
Premium notes, policy loans and liens		279
Short-term investments		67,419
Other invested assets		285,796
Real estate income		666
Derivative instruments		(5,467	)
Gross investment income	$	3,335,273
Other long term assets — statement value	$	4,820,920
Bonds and Short-Term Investments by Maturity and Class by Maturity (weighted based on future cashflows) — Statement Value
Due within one year or less	$	1,566,483
Over 1 year through 5 years		11,430,359
Over 5 years through 10 years		8,639,941
Over 10 years through 20 years		7,792,103
Over 20 years		6,493,530
Total by maturity	$	35,922,416
by Class — Statement Value
Class 1	$	23,873,069
Class 2		9,582,422
Class 3		971,996
Class 4		1,314,331
Class 5		162,953
Class 6		17,645
Total by class	$	35,922,416
Total bonds publicly traded	$	10,471,923
Total bonds privately placed		25,450,493
Total	$	35,922,416
Mortgage loans on real estate by standing (book value including nonadmitted portion):
Commercial mortgages	$	12,360,565
Residental mortgages		9,559,831
Total	$	21,920,396
Mortgage loans on real estate by by standing (book value):
Good standing	$	21,777,783
Interest overdue more than 90 days, not in foreclosure		99,500
Mortgage loans in the process of foreclosure		43,113
Total	$	21,920,396
Collateral loans	$	1,168,968
Stock of parents, subsidiaries, and affiliates (book value including nonadmitted portion) — bonds	$	—
Preferred stocks — statement value	$	191,152
Common stocks — market value	$	110,247
Options, Caps & Floors Owned — Statement Value	$	1,772,993

Short-term investments — book value:	$	5,811
Cash equivalents — book value	$	1,572,290
Cash on deposit	$	18,124
	$	1,596,225
Life insurance in force
Ordinary life	$	1,664,077
Group life		1,503,394
	$	3,167,471
Annuities
Ordinary
Deferred — fully paid account balance	$	36,381,510
Deferred — not fully paid account balance		30
	$	36,381,540
Group
Fully paid account balance	$	745,722
Not fully paid account balance		484
	$	746,206
Accident and health insurance — premiums in force:
Ordinary	$	72,488
Group		5,660
	$	78,148
Claim payments:
Other accident and health —
2025	$	17,165
2024	$	17,761
Claims reserves:
2025	$	37,353
2024	$	27,125
Deposit funds and dividend accumulations:
Deposit funds — account balance	$	12,088,926
Dividend accumulations — account balance	$	—

Investment Risk Interrogatories

1. The Company's admitted assets as reported in the statutory basis statements of admitted assets, liabilities and capital and surplus is $68,610,376 at December 31, 2025.

2. The 10 largest exposures to a single issuer/borrower/investment, by investment category, excluding: (i) U.S. government, US Government agency securities and those U.S government money market funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt, (ii) property occupied by the Company and (iii) policy loans

Investment Category	Issuer	Amount		Percentage of Total Admitted Assets
Other Invested Assets	2.01 KKR Alternative Insurance Assets, L.P.	$	918,356		1.3	%
Issuer Credit Obligations/ Other Invested Assets	2.02 BX Frontier Member I LLC	$	872,979		1.3	%
Asset Backed Securities	2.03 THUNDERBIRD 2021-1 FINANCING LP	$	800,652		1.2	%
Asset Backed Securities	2.04 LIGHTNING 2021-1 FINANCING LP	$	800,380		1.2	%
Issuer Credit Obligations	2.05 BEAR FINANCING L.P	$	622,875		0.9	%
Asset Backed Securities/ Other Invested Assets	2.06 KCW Funding Co, LLC	$	583,784		0.9	%
Asset Backed Securities/ Other Invested Assets	2.07 MOST Trust 2020- 1	$	439,230		0.6	%
Asset Backed Securities/ Other Invested Assets	2.08 Blue Eagle 2020-2A, Ltd.	$	435,458		0.6	%
Mortgages	2.09 Aster Mobility Solutions Pte Ltd	$	422,197		0.6	%
Other Invested Assets	2.10 Stellar Renewable Power LLC	$	414,207		0.6	%

3. The amount and percentage of the Company's total admitted assets held in bonds, short-term investments and cash equivalents, and by NAIC rating is as follows:

NAIC Rating	Amount		Percentage of Total Admitted Assets
Bonds
3.01 NAIC-1	$	23,873,069		34.8	%
3.02 NAIC-2	$	9,582,422		14.0	%
3.03 NAIC-3	$	971,996		1.4	%
3.04 NAIC-4	$	1,314,331		1.9	%
3.05 NAIC-5	$	162,953		0.2	%
3.06 NAIC-6	$	17,645		—	%
	$	35,922,416		52.3	%
NAIC Rating	Amount		Percentage of Total Admitted Assets
Preferred Stocks
3.07 P/RP-1	$	34,176		—	%
3.08 P/RP-2	$	81,128		0.1	%
3.09 P/RP-3	$	52,504		0.1	%
3.10 P/RP-4	$	—		—	%
3.11 P/RP-5	$	1,175		—	%
3.12 P/RP-6	$	22,178		—	%
	$	191,161		0.2	%

4. Assets held in foreign investments are as follows

	Amount		Percentage of Total Admitted Assets
4.02 Total admitted assets held in foreign investments	$	7,601,138		11.1	%
4.03 Foreign-currency-denominated investments	$	3,818,682		5.6	%
4.04 Insurance liabilities denominated in that same foreign currency	$	—		—	%

5. Aggregate foreign investment exposure categorized by NAIC sovereign rating:

	Amount		Percentage of Total Admitted Assets
5.01 Countries rated NAIC-1	$	7,386,470		10.8	%
5.02 Countries rated NAIC-2	$	214,668		0.3	%
5.03 Countries rated NAIC-3 or below	$	—		—	%

6. Largest foreign investment exposure to a single country, categorized by the country's NAIC sovereign rating:

	Amount		Percentage of Total Admitted Assets
Countries rated NAIC-1
6.01 Cayman Islands	$	2,525,156		3.7	%
6.02 United Kingdom	$	1,290,388		1.9	%
Countries rated NAIC-2
6.03 India	$	133,532		0.2	%
6.04 Italy	$	71,307		0.1	%
Countries rated NAIC-3 or below
6.05	$	—		—	%
6.06	$	—		—	%

a. Assets held in unhedged foreign currency exposure are less than 2.5% of the Company's total admitted assets.

10. Ten largest non-sovereign (i.e. non-governmental) foreign issues:

Issuer	NAIC Rating	Amount		Percentage of Total Admitted Assets
10.01 Blue Eagle 2020-2A, Ltd.	1, 2, 3 and NR	$	435,458		0.6	%
10.02 Aster Mobility Solutions Pte Ltd	CM2	$	422,197		0.6	%
10.03 Wallaby (Mileway)	CM2	$	389,188		0.6	%
10.04 APOLLO MANAGEMENT HOLDIN	2	$	233,543		0.3	%
10.05 Project Platform	CM2	$	211,028		0.3	%
10.06 KKR Bidco (Jersey)	4	$	173,392		0.3	%
10.07 Project Scale	CM2	$	150,286		0.2	%
10.08 ORBEA LOGISTICS PORTFOLIO	CM2	$	144,269		0.2	%
10.09 Manipal Global Health Service	4	$	133,532		0.2	%
10.10 ELECTRICITE DE FRANCE SA	2	$	116,427		0.2	%

11. Assets held in Canadian investments and unhedged Canadian currency exposure are less than 2.5% of the Company's total admitted assets.

12. Assets held in investments with contractual sales restrictions are less than 2.5% of the Company's total admitted assets.

13. Assets held in equity interests:

Issuer	Amount		Percentage of Total Admitted Assets
13.02 KKR Alternative Insurance Assets, L.P.	$	918,356		1.34	%
13.03 KKR ASSOCIATES PROPERTY PARTNERS AMERICAS SCSP	$	337,775		0.49	%
13.04 DCIF — FLIC Lux B	$	246,686		0.36	%
13.05 TOAMS LLC	$	187,693		0.27	%
13.06 FHLB Indianapolis	$	92,925		0.14	%
13.07 PANAMINT POWER LLC	$	90,544		0.13	%
13.08 Island Parkway	$	90,288		0.13	%
13.09 GOLDMAN SACHS GROUP INC	$	52,504		0.08	%
13.1 Magenta Aggregator L.P.	$	50,387		0.07	%
13.11 BP CAPITAL MARKETS PLC	$	34,176		0.05	%

14. Assets held in nonaffiliated, privately placed equities are less than 2.5% of the Company's total admitted assets.

15. Assets held in general partnership interests are less than 2.5% of the Company's total admitted assets.

16. With respect to mortgage loans reported in Schedule B, the Company's ten largest aggregate mortgage interests are as follows: The aggregate mortgage interest represents the combined value of all mortgages secured by the same group of properties:

Type	Amount		Percentage of Total Admitted Assets
16.01 Commercial	$	422,197		0.6	%
16.02 Commercial	$	389,188		0.6	%
16.03 Residential	$	316,333		0.5	%
16.04 Commercial	$	211,028		0.3	%
16.05 Commercial	$	206,462		0.3	%
16.06 Commercial	$	197,229		0.3	%
16.07 Residential	$	193,152		0.3	%
16.08 Commercial	$	192,168		0.3	%
16.09 Commercial	$	190,731		0.3	%
16.10 Commercial	$	187,288		0.3	%

Amounts and percentages of the Company's total admitted assets held in the following categories of mortgage loans:

	Amount		Percentage of Total Admitted Assets
16.11 Construction loans	$	—		0.0	%
16.12 Mortgage loans over 90 days past due	$	99,500		0.1	%
16.13 Mortgage loans in the process of foreclosure	$	43,113		0.1	%
16.14 Mortgage loans foreclosed	$	—		0.0	%
16.15 Restructured mortgage loans	$	—		0.0	%

17. Aggregate mortgage loans have the following loan-to-value ratios as determined for the most current appraisal as of the statement date:

	Residential					Commercial					Agricultural
Loan to Value	Amount		Percentage of Total Admitted Assets			Amount		Percentage of Total Admitted Assets			Amount		Percentage of Total Admitted Assets
17.01 above 95%	$	129,430		0.2	%	$	445,364		0.6	%	$	—		0.0	%
17.02 91 to 95%	$	21,332		0.0	%	$	250,944		0.4	%	$	—		0.0	%
17.03 81 to 90%	$	881,007		1.3	%	$	162,161		0.2	%	$	—		0.0	%
17.04 71 to 80%	$	3,208,549		4.7	%	$	1,481,194		2.2	%	$	—		0.0	%
17.05 below 70%	$	5,319,513		7.8	%	$	10,020,902		14.6	%	$	—		0.0	%
	$	9,559,830		14.0	%	$	12,360,565		18.0	%	$	—		0.0	%

18. Assets held in each of the five largest investments in one parcel or group of contiguous parcels of real estate reported in Schedule A are less than 2.5% of the Company's total admitted assets.

19. Assets held in mezzanine real estate loans are less than 2.5% of the Company's total admitted assets.

20. Amounts and percentages if the reporting entity's total admitted assets subject to the following agreements:

	At Year-End					At End of Each Quarter
	Amount		Percentage			1st Qtr Amount		2nd Qtr Amount		3rd Qtr Amount
20.01 Securities lending (do not include assets held as collateral for such transactions)	$	—		0.0	%	$	—	$	—	$	—
20.02 Repurchase agreements	$	—		0.0	%	$	—	$	—	$	—
20.03 Reverse repurchase agreements	$	—		0.0	%	$	—	$	—	$	—
20.04 Dollar repurchase agreements	$	—		0.0	%	$	—	$	—	$	—
20.05 Dollar reverse repurchase agreements	$	—		0.0	%	$	—	$	—	$	—

21. Amounts and percentages of the reporting entity's total admitted assets for warrants attached to other financial instruments, options, caps and floors:

	Owned					Written
	Amount		Percentage of Total Admitted Assets			Amount			Percentage of Total Admitted Assets
21.01 Hedging	$	1,872,087		2.7	%	$	(98,926	)		(0.1	)%
21.01 Income generation	$	—		0.0	%	$	—			0.0	%
21.01 Other	$	—		0.0	%	$	—			0.0	%
	$	1,872,087		2.7	%	$	(98,926	)		(0.1	)%

22. Amounts and percentages of the reporting entity's total admitted assets of potential exposure for collars, swaps and forwards:

	At Year-End					At End of Each Quarter
	Amount		Percentage			1st Qtr Amount		2nd Qtr Amount		3rd Qtr Amount
22.01 Hedging	$	168,787		0.2	%	$	141,262	$	125,427	$	152,298
22.02 Income generation	$	—		0.0	%	$	—	$	—	$	—
22.03 Replications	$	48,902		0.1	%	$	55,025	$	59,878	$	51,657
22.04 Other	$	—		0.0	%	$	—	$	—	$	—

23. Amounts and percentages of the reporting entity's total admitted assets of potential exposure for future contracts:

	At Year-End					At End of Each Quarter
	Amount		Percentage			1st Qtr Amount		2nd Qtr Amount		3rd Qtr Amount
23.01 Hedging	$	50,705		0.1	%	$	40,325	$	60,623	$	57,350
23.02 Income generation	$	—		0.0	%	$	—	$	—	$	—
23.03 Replications	$	—		0.0	%	$	—	$	—	$	—
23.04 Other	$	—		0.0	%	$	—	$	—	$	—

	Gross Investment Holdings*					Admitted Assets as Reported in the Annual Statement
	Amount		Percentage of Total Admitted Assets			Amount		Percentage of Total Admitted Assets
Investment Categories
Issuer credit obligations:
U.S. government obligations	$	60,431		0.09	%	$	60,431		0.09	%
Other U.S. government obligations		—		—	%		—		—	%
Non-U.S. sovereign jurisdiction securities		116,427		0.18	%		116,427		0.18	%
Municipal Bonds — general obligations (direct & guaranteed)		48,392		0.07	%		48,392		0.07	%
Municipal bonds — special revenue		705,482		1.06	%		705,482		1.06	%
Project finance bonds issues by operating entities		2,013,146		3.03	%		2,013,146		3.03	%
Corporate bonds		10,025,912		15.10	%		10,025,912		15.11	%
Mandatory convertible bonds		—		—	%		—		—	%
Single entity backed obligations		13,834		0.02	%		13,834		0.02	%
SVO-identified bond exchange traded funds — fair value		78,466		0.12	%		78,466		0.12	%
SVO-identified bond exchange traded funds — systematic value		—		—	%		—		—	%
Bonds issued by funds representing operating entities		—		—	%		—		—	%
Bank loans — issued		—		—	%		—		—	%
Bank loans — acquired		858,892		1.29	%		858,892		1.29	%
Mortgage loans that qualify as SVO-identified credit tenant loans		—		—	%		—		—	%
Certificates of deposit		—		—	%		—		—	%
Other issuer credit obligations		134,674		0.20	%		134,674		0.20	%
Total issuer credit obligations		14,055,656		21.16	%		14,055,656		21.17	%
Asset-backed securities:
Financial asset-backed securities — self-liquidating		17,812,964		26.84	%		17,812,964		26.85	%
Financial asset-backed securities — not self-liquidating		2,294,291		3.46	%		2,294,291		3.46	%
Non-financial asset-backed securities		1,753,120		2.64	%		1,753,120		2.64	%
Total asset-backed securities		21,860,375		32.94	%		21,860,375		32.95	%
Preferred stocks:
Industrial and miscellaneous (unaffiliated)		191,152		0.29	%		191,152		0.29	%
Parent, subsidiaries and affiliates		10		—	%		—		—	%
Total preferred stocks		191,162		0.29	%		191,152		0.29	%
Common stocks:
Industrial and miscellaneous publicly traded (unaffiliated)		11,768		0.02	%		11,768		0.02	%
Industrial and miscellaneous other (unaffiliated)		98,479		0.15	%		98,479		0.15	%
Parent, subsidiaries and affiliates Other		—		—	%		—		—	%
Total common stocks		110,247		0.17	%		110,247		0.17	%
Mortgage loans:
Farm mortgages		—		—	%		—		—	%
Residential mortgages		9,559,830		14.40	%		9,559,830		14.41	%
Commercial mortgages		11,591,747		17.46	%		11,591,747		17.47	%
Mezzanine real estate loans		768,819		1.16	%		768,819		1.16	%
Total mortgage loans		21,920,396		33.02	%		21,920,396		33.04	%
Real estate:
Properties held for production of income		17,439		0.03	%		17,439		0.03	%
Properties held for sale		9,188		0.01	%		9,188		0.01	%
Total real estate		26,627		0.04	%		26,627		0.04	%
Cash		18,125		0.03	%		18,125		0.03	%
Cash equivalents		1,572,290		2.37	%		1,572,290		2.37	%
Short-term investments		5,811		0.01	%		5,811		0.01	%
Contract loans		2,822		—	%		2,822		—	%
Derivatives		1,769,651		2.67	%		1,769,651		2.67	%
Other invested assets		4,113,854		6.20	%		4,108,854		6.19	%
Receivables for securities		732,083		1.10	%		712,066		1.07	%
Total invested assets	$	66,379,099		100.00	%	$	66,354,072		100.00	%

* Gross investment holdings as valued in compliance with the NAIC Accounting Practices and Procedures Manual

Independent Auditor's Report				F-3 – F-4
Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus				F-5
Statutory Statements of Operations				F-6
Statutory Statements of Changes in Capital and Surplus				F-7
Statutory Statements of Cash Flows				F-8
Notes to Statutory Financial Statements				F-9 – F-49
Supplemental Information				F-50
Supplemental Schedule of Selected Statutory Basis Financial Data				F-51 – F-52
Supplemental Schedule of Investment Risk Interrogatories				F-53 – F-57
Summary Investment Schedule				F-58
Supplemental Schedule of Reinsurance Disclosures				F-59 – F-60