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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">United
            States</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Securities and
            Exchange Commission</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Washington, D. C.
            20549</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Form
            8-K</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Current
            Report</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Pursuant to
            Section 13 or 15(d) of</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">the Securities
            Exchange Act of 1934</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Date of Report
            (Date of earliest event reported):</font> <font size="2">November 13,
            2007</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <div align="left">
                <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="600">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <b><font size="2">Kansas City Life Insurance Company</font></b></p>
                        </td>
                    </tr>

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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                            </p>
                            <hr width="100%" color="black" noshade size="1">
                        </td>
                    </tr>

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                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="600">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <font size="2">(Exact Name of Registrant as Specified in
                            Charter)</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                            <u><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Missouri&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></u></p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <u><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2-40764&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></u></p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">
                            <u><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44-0308260&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></u></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                            <font size="2">(State of Incorporation)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <font size="2">(Commission File Number)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">
                            <font size="2">(IRS Employer Identification No.)</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="center">
                <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="575" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="317">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <b><font size="2">3520 Broadway</font></b><br>
                            <u><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kansas
                            City,
                            Missouri&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></u></p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="59">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            &nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="199">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <u><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64111-2565&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></u></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="317">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <font size="2">(Address of Principal Executive Offices)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="59">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            &nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="199">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <font size="2">(Zip Code)</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><b><font size="2">Telephone Number:
            (816) 753-7000</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="center">
                <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="351" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="351">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <b><font size="2">Not Applicable</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                            </p>
                            <hr width="100%" color="black" noshade size="1">
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="351">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                            <font size="2">(Former name or former address, if changed since last
                            report)</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">
            <font face="Times New Roman, Times, Serif" size="2"><font size="2">Check the
            appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
            filing obligation of the registrant under any of the following
            provisions:</font></font></p>

            <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">
            <font face="Times New Roman, Times, Serif" size="2"><font face="Wingdings"><font size="2">
            o</font></font> <font size="2">Written communications pursuant to Rule 425 under the
            Securities Act (17 CFR 230.425)</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
            <font face="Times New Roman, Times, Serif" size="2"><font face="Wingdings"><font size="2">
            o</font></font> <font size="2">Soliciting material pursuant to Rule 14a-12 under the
            Exchange Act (17 CFR 240.14a-12)</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
            <font face="Times New Roman, Times, Serif" size="2"><font face="Wingdings"><font size="2">
            o</font></font> <font size="2">Pre-commencement communications pursuant to Rule
            14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
            <font face="Times New Roman, Times, Serif" size="2"><font face="Wingdings"><font size="2">
            o</font></font> <font size="2">Pre-commencement communications pursuant to Rule
            13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
            <font face="Times New Roman, Times, Serif" size="2"><font size="2"><strong>-1-</strong></font></font></p>

            <p align="center">&nbsp;</p>
            <hr style="MARGIN-TOP: -2px" width="100%" noshade size="1">
            <hr style="MARGIN-TOP: -10px" width="100%" noshade size="4">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <PAGE>

            <p align="left"><strong><font size="2">Item 2.02 Results of Operations and Financial
            Condition.</font></strong></p>

            <p align="left"><font size="2">Included below is a release of financial information
            mailed to stockholders on November 13<font size="2">, 2007.&nbsp; It reflects the
            financial condition, in a condensed format, for Kansas City Life Insurance Company as
            of September 30, 2007, and was previously included in the Company's third quarter Form
            10-Q report filed on November 2, 2007.</font></font></p>

            <p align="left"><b><font size="2">Message from the President, CEO and Chairman of the
            Board</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="left">
            <font size="2"><font size="2">Kansas City Life Insurance Company reported net income of
            $9.1 million or $0.77 per share for the quarter and $29.2 million or $2.47 per share
            for the nine months ended September 30, 2007.&nbsp; Net income declined $0.4 million or
            4% for the third quarter and increased $2.4 million or 9% for the nine months, relative
            to the same periods in 2006.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">
            <font size="2"><font size="2">Net income for the third quarter was favorably impacted
            by increases in immediate annuity premiums and investment gains from the sale of real
            estate, along with reduced policyholder benefits and operating expenses. Offsetting
            these favorable results was the impact of reduced net investment income, which resulted
            from both a lower level of invested assets during the current year and lower investment
            expenses in the third quarter of 2006.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">
            <font size="2"><font size="2">The increase in net income in the nine months was
            primarily due to a $4.1 million increase in realized investment gains, accompanied by a
            decline in the amortization of deferred acquisition costs and value of business
            acquired, and reduced operating expenses.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">
            <font size="2"><font size="2">New premiums increased 3% for the third quarter and nine
            month period relative to the prior year. This included increases in individual life,
            immediate annuity, and group life insurance premiums in the third quarter. New deposits
            on policyholder account balances increased 7% for the third quarter, primarily due to
            increases in variable and fixed deferred annuities. New deposits in the nine months
            increased 5%, primarily due to increased sales of variable annuities and universal life
            insurance.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">
            <font size="2"><font size="2">Policyholder benefits and interest credited declined $1.7
            million or 3% in the third quarter relative to the same period in the prior year,
            primarily as a result of lower death benefits and reduced policyholder account
            balances. These same changes resulted in a decline of $2.4 million or 1% in
            policyholder benefits and interest credited for the nine month
            period.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">
            <font size="2"><font size="2">In addition to strong financial results, the Company
            strengthened its product mix with the addition of a new guaranteed minimum withdrawal
            benefit rider during the third quarter. This new product works in tandem with the
            Company&rsquo;s variable annuity product to provide policyholders with certain
            guaranteed levels of income in retirement. The introduction of this new product is
            noteworthy because these types of guaranteed income and benefit products are becoming
            very popular with consumers as they prepare for the uncertainties of providing for a
            secure future. The Company remains focused on increasing its life insurance business
            and an important aspect of successfully doing so is to maintain a competitive array of
            financial protection products that help Kansas City Life agents meet the financial
            security needs of their clients.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">
            <font size="2"><font size="2">We were saddened by the recent passing of Warren J.
            Hunzicker, M.D., a member of the Kansas City Life Board of Directors since 1989. Having
            served as Vice President and Medical Director for Kansas City Life for many years prior
            to his service on the Board of Directors, Dr. Hunzicker contributed greatly to the
            success of Kansas City Life and will truly be missed.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
            <font size="2"><font size="2">The Kansas City Life Board of Directors approved a
            quarterly dividend of $0.27 per share to be paid November 13, 2007, to shareholders of
            record as of November 8, 2007.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center">
            <font face="Times New Roman, Times, Serif" size="2"><b>-2-</b></font></p>
            <!-- EEDocs PBStart-->
            <hr style="PAGE-BREAK-AFTER: always" align="center" width="100%" noshade size="5">
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="left">
            <b><em><font face="Times New Roman, Times, serif" size="4"><font size="3">Consolidated<br>

            </font></font></em></b><font face="Times New Roman, Times, Serif" size="2"><b><font face="Times New Roman, Times, serif" size="4">
            <em>Balance Sheets<br>
            </em></font></b><em>(Thousands)</em></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr style="FONT-SIZE: 1px">
                    <td valign="bottom" width="68%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="9%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="9%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">September&nbsp;30<br>
                        2007</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">December 31<br>
                        2006</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">(Unaudited)</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">&nbsp;</td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Assets</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Investments:</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp; Fixed maturity securities
                    available</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; for sale,
                        at fair value</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2,623,597</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2,719,439</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp; Equity securities
                    available</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; for sale,
                        at fair value</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">49,256</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">52,351</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Mortgage
                        loans</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">458,466</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">472,019</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2"><font face="Times New Roman, Times, Serif" size="2">
                        Short-term investments</font></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">63,031</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">44,219</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Other&nbsp;investments</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">187,211</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">205,743</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">&nbsp;</td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total
                        investments</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,381,561</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,493,771</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Cash</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">11,048</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,908</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Deferred acquisition
                        costs</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">220,177</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">220,595</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Value of business
                        acquired</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">76,146</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">82,769</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Other assets</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">259,292</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">256,003</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Separate account
                        assets</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">428,947</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">400,749</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">&nbsp;</td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total assets</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">4,377,171</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom" width="15">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom" width="0">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">4,457,795</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Liabilities</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Future policy
                        benefits</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">849,905</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">853,102</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Policyholder account
                        balances</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2,110,532</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2,191,105</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Notes
                        payable</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">8,700</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">14,700</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Income taxes</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">27,764</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">35,319</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Other
                        liabilities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">282,830</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">278,516</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Separate account
                        liabilities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">428,947</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        &nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">400,749</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">&nbsp;</td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total
                        liabilities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,708,678</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,773,491</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Stockholders'
                        Equity</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Common stock</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">23,121</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">23,121</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Additional paid in
                        capital</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">29,013</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">25,852</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Retained
                        earnings</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">776,909</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">780,892</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">Accumulated other</font> </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
                        comprehensive loss</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(35,712</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(25,118</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Treasury
                        stock</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(124,838</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="0">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(120,443</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">&nbsp;</td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total stockholder's
                        equity</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">668,493</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" width="15">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="0">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">684,304</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">&nbsp;</td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom" width="39">
                    </td>

                    <td valign="bottom" width="15">
                    </td>

                    <td valign="bottom" width="0">
                    </td>

                    <td valign="bottom" width="579">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total liabilities
                        and&nbsp;equity</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">4,377,171</font></p>
                    </td>

                    <td valign="bottom" width="39">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom" width="15">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom" width="0">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">4,457,795</font></p>
                    </td>

                    <td valign="bottom" width="579">
                        <p>&nbsp;</p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center">
            <font face="Times New Roman, Times, Serif" size="2"><i>See accompanying Notes to
            Consolidated Financial Statements.</i></font></p>

            <p align="center">
            <font face="Times New Roman, Times, Serif" size="2"><b>-3-</b></font></p>
            <hr align="center" width="100%" noshade size="5">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <PAGE><a name="consolsi"></a>

            <p align="left"><font face="Times New Roman, Times, Serif"><em><strong>Consolidated<br>
            </strong></em></font><font face="Times New Roman, Times, Serif" size="2"><em><font size="4">
            <strong>Statements of Income (Unaudited)<br>
            </strong></font></em><font face="Times New Roman, Times, Serif" size="2"><em>(Thousands,
            except share data)</em></font></font></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr style="FONT-SIZE: 1px">
                    <td valign="bottom" width="52%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="6%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="6%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="6%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="6%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt" align="center">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="5">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">Quarter ended<br>
                        September&nbsp;30</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="5">
                        <p align="center"><font face="Times New Roman, Times, Serif" size="1">Nine
                        Months ended<br>
                        September 30</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt" align="center">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">2007</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">2006</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">2007</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="center">
                        <font face="Times New Roman, Times, Serif" size="1">2006</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt" align="center">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Revenues</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Insurance
                        revenues:</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Premiums</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">43,041</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">43,182</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">131,033</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">131,296</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Contract
                        charges</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">28,058</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">28,364</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">83,238</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">86,217</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Reinsurance
                        ceded</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(13,193</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(13,404</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(40,532</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(40,739</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total insurance
                        revenues</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">57,906</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">58,142</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">173,739</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">176,774</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Investment
                        revenues:</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Net investment
                        income</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">46,869</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">48,995</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">142,624</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">146,731</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Realized investment
                        gains</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">1,339</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">757</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">6,501</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2,397</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Other
                        revenues</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2,674</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,330</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">8,848</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">8,835</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total
                        revenues</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">108,788</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">111,224</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">331,712</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">334,737</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Benefits and
                        expenses</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Policyholder
                        benefits</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">41,646</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">42,112</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">126,644</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">126,138</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Interest credited to
                        policyholder account balances</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">22,614</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">23,805</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">68,119</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">71,019</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">Amortization of deferred acquisition
                    costs</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; and value
                        of business acquired</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">10,802</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">10,623</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">28,400</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">32,939</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Operating
                        expenses</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">20,638</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">21,392</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">65,764</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">67,186</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Total benefits and
                        expenses</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">95,700</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">97,932</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">288,927</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">297,282</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Income before income
                        tax expense</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">13,088</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">13,292</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">42,785</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">37,455</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Income tax
                        expense</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,957</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,766</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">13,536</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">10,631</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Net
                        Income</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">9,131</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">9,526</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">29,249</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">26,824</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Per common
                        share:</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Net income, basic and
                        diluted</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">0.77</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">0.80</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2.47</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2.25</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Cash
                        dividends</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">0.27</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">0.27</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">2.81</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">0.81</font></p>
                    </td>

                    <td valign="bottom">
                    </td>
                </tr>
            </table>

            <p align="center"><font face="Times New Roman, Times, Serif" size="2"><i>See
            accompanying Notes to Consolidated Financial Statements.</i></font></p>

            <p align="center">
            <font face="Times New Roman, Times, Serif" size="2"><b>-4-</b></font></p>
            <hr align="center" width="100%" noshade size="5">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <PAGE><a name="consolcf"></a>

            <p align="left">
            <font face="Times New Roman, Times, Serif" size="2"><em><font size="3"><strong>Consolidated<br>

            </strong></font></em><font face="Times New Roman, Times, Serif" size="2"><em><font face="Times New Roman, Times, serif" size="4">
            <strong>Statements of Cash Flows (Unaudited)<br>
            </strong></font>(Thousands)</em></font></font></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr style="FONT-SIZE: 1px">
                    <td valign="bottom" width="73%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="7%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="3%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" width="7%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="1%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="5">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">Nine&nbsp;Months
                        ended<br>
                        September&nbsp;30</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="center">
                        <font face="Times New Roman, Times, Serif" size="1">2007</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom" colspan="2">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="1">2006</font></p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>

                    <td valign="bottom" colspan="2">
                    </td>

                    <td valign="bottom">
                        <p align="center">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Operating
                        Activities</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                        Net cash provided</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,716</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">5,165</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Investing
                        Activities</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Purchases of
                        investments:</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Fixed maturity
                        securities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(191,568</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(200,850</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Equity
                        securities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(2,871</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(9,737</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Mortgage
                        loans</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(50,399</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(45,787</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Real estate</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(2,465</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(44,068</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Other investment
                        assets</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(21,995</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2"><font size="3">-</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Sales of
                        investments:</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Fixed maturity
                        securities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">32,856</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">83,029</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Equity
                        securities</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,481</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">1,123</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Other investment
                        assets</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">25,013</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">32,205</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Maturities and
                        principal paydowns</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp; of&nbsp;other
                    investments</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">283,940</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom"><font size="2">&nbsp;241,362</font></td>

                    <td valign="bottom">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Net additions to
                        property and</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp; equipment</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(630</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(1,097</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Proceeds from sale
                        of</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;&nbsp;&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font size="2">&nbsp;&nbsp; non insurance affiliate</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="justify">
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,104</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="center">&nbsp;-</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Net cash
                        provided</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">85,466</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">56,180</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2"><b><em>Financing
                        Activities</em></b></font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Proceeds from
                        borrowings</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">30,637</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">55,796</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Repayment of
                        borrowings</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(36,637</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(65,045</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Deposits on
                        policyholder account</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp; balances</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    154,914</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">153,437</font></p>
                    </td>

                    <td valign="bottom">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Withdrawals from
                        policyholder</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp; account balances</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(227,562</font></td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(202,000</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Net transfers
                        from</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp; separate accounts</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    11,391</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">13,186</font></p>
                    </td>

                    <td valign="bottom">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Change in other
                        deposits</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">19,725</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(12,258</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Cash dividends to
                        stockholders</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(33,275</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(9,624</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Net acquisition
                        of</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(1,235</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(2,172</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom"><font size="2">&nbsp;&nbsp; treasury stock</font></td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Net cash
                        used</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(82,042</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(68,680</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Increase (decrease) in
                        cash</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">7,140</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">(7,335</font></p>
                    </td>

                    <td valign="bottom">
                        <p><font face="Times New Roman, Times, Serif" size="2">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">
                        <font face="Times New Roman, Times, Serif" size="2">Cash at beginning of
                        year</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2">3,908</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 1pt solid; EEPStyleName: Border Cell Single" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">12,099</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#e3ecff">
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        <font face="Times New Roman, Times, Serif" size="2">Cash at end of
                        period</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">11,048</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">$</font></p>
                    </td>

                    <td valign="bottom">
                        <p style="BORDER-BOTTOM: #000000 2.25pt double; EEPStyleName: Border Cell Double" align="right">
                        <font face="Times New Roman, Times, Serif" size="2">4,764</font></p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom">
                        <p style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                    </td>

                    <td valign="bottom">
                        <p>&nbsp;</p>
                    </td>
                </tr>
            </table>

            <p align="center"><font face="Times New Roman, Times, Serif" size="2"><i>See
            accompanying Notes to Consolidated Financial Statements.</i></font></p>

            <p align="center">
            <font face="Times New Roman, Times, Serif" size="2"><b>-5-</b></font></p>
            <hr align="center" width="100%" noshade size="5">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <PAGE><a name="notestoconsolfs"></a><br>
            <font face="Times New Roman, Times, Serif" size="2"><b><font face="Times New Roman, Times, Serif" size="2">
            <i>Notes</i></font></b></font>

            <div align="center">
                <font face="Times New Roman, Times, Serif" size="2"><b>
                <!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" --></b></font>

                <table cellspacing="0" cellpadding="0" width="350" border="0">
                    <tr valign="top">
                        <td width="5%">&bull;</td>

                        <td width="95%">
                        <font face="Times New Roman, Times, Serif" size="2">Comprehensive income
                        was $19.7 million and $46.5 million for the third quarters and $18.6
                        million and $13.5 million for the nine months ended September 30, 2007 and
                        2006, respectively. This varies from net income largely due to unrealized
                        gains or losses on investments.</font> </td>
                    </tr>
                </table>
            </div>
            <font face="Times New Roman, Times, Serif" size="2"><b><br>
            </b></font>

            <div align="center">
                <font face="Times New Roman, Times, Serif" size="2"><b>
                <!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" --></b></font>

                <table cellspacing="0" cellpadding="0" width="350" border="0">
                    <tr valign="top">
                        <td width="5%">&bull;</td>

                        <td width="95%"><font face="Times New Roman, Times, Serif" size="2">Net
                        income per common share was based upon the weighted average number of
                        shares outstanding of 11,842,494 and 11,875,104 for the third quarters and
                        11,851,906 and 11,888,046 for the nine months ended September 30, 2007 and
                        2006, respectively.</font> </td>
                    </tr>
                </table>
            </div>
            <font face="Times New Roman, Times, Serif" size="2"><b><br>
            </b></font>

            <div align="center">
                <font face="Times New Roman, Times, Serif" size="2"><b>
                <!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" --></b></font>

                <table cellspacing="0" cellpadding="0" width="350" border="0">
                    <tr valign="top">
                        <td width="5%">&bull;</td>

                        <td width="95%"><font face="Times New Roman, Times, Serif" size="2">These
                        interim financial statements are unaudited but, in management's opinion,
                        include all adjustments necessary for a fair presentation of the results
                        and are included in the Company's Form 10-Q as filed with the Securities
                        and Exchange Commission. Please refer to the Company's Form 10-Q and the
                        Company's Annual Report on Form 10-K at www.kclife.com.</font> </td>
                    </tr>
                </table>
            </div>
            <font face="Times New Roman, Times, Serif" size="2"><b><br>
            </b></font>

            <div align="center">
                <font face="Times New Roman, Times, Serif" size="2"><b>
                <!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" --></b></font>

                <table cellspacing="0" cellpadding="0" width="350" border="0">
                    <tr valign="top">
                        <td width="5%">&bull;</td>

                        <td width="95%"><font face="Times New Roman, Times, Serif" size="2">Certain
                        amounts in prior years have been reclassified to conform with the current
                        year presentation.</font> </td>
                    </tr>
                </table>
            </div>

            <p align="center">&nbsp;</p>

            <p align="center">
            <font face="Times New Roman, Times, Serif" size="2"><b>-6-</b></font></p>
            <hr align="center" width="100%" noshade size="5">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <PAGE><PAGE><br>

            <p align="center">
            <a name="a14"></a><font face="Times New Roman, Times, Serif" size="2"><b><a name="signatures">
            </a>SIGNATURES</b></font></p>

            <p align="justify">
            <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
            Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
            duly caused this report to be signed on its behalf by the undersigned thereunto duly
            authorized.</font></p>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr style="FONT-SIZE: 1px">
                    <td valign="top" width="50%">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="4">
                        <p align="right">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="4">
                        <p align="right">
                        <font face="Times New Roman, Times, Serif" size="2"><b>KANSAS CITY LIFE
                        INSURANCE COMPANY</b></font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="4">
                        <hr align="right" width="97%" noshade size="1">
                    </td>
                </tr>

                <tr>
                    <td valign="top">
                        <p align="right">&nbsp;</p>
                    </td>

                    <td valign="top" colspan="4">
                        <p align="center">
                        <font face="Times New Roman, Times, Serif" size="2">(Registrant)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top">
                    </td>

                    <td valign="top" colspan="4">
                    </td>
                </tr>

                <tr>
                    <td valign="top">
                    </td>

                    <td valign="top" colspan="4">
                    </td>
                </tr>

                <tr>
                    <td valign="top">
                    </td>

                    <td valign="top" width="59">
                        <p>&nbsp;</p>
                    </td>

                    <td width="7">
                        <p><font size="2">By:&nbsp;</font></p>
                    </td>

                    <td width="20">
                        <p><font face="Times New Roman, Times, Serif" size="2">&nbsp;
                        /s/</font></p>
                    </td>

                    <td width="257"><font size="2">William A. Schalekamp</font></td>
                </tr>

                <tr height="19">
                    <td valign="top">
                    </td>

                    <td valign="top" colspan="2">
                    </td>

                    <td width="20">
                    </td>

                    <td width="257"><font size="2">William A. Schalekamp,</font></td>
                </tr>

                <tr>
                    <td valign="top">
                    </td>

                    <td valign="top" colspan="2">
                    </td>

                    <td width="20">
                    </td>

                    <td width="257"><font size="2">Senior Vice President,</font></td>
                </tr>

                <tr>
                    <td valign="top">
                    </td>

                    <td valign="top" colspan="2">
                    </td>

                    <td width="20">
                    </td>

                    <td width="257"><font size="2">General Counsel &amp; Secretary</font></td>
                </tr>
            </table>
            <br>

            <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr style="FONT-SIZE: 1px">
                    <td valign="bottom" width="100%" colspan="2">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" colspan="2">
                        <p><font face="Times New Roman, Times, Serif" size="2">November 13,
                        2007</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" colspan="2">
                        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                            <p><font size="2">(Date)</font></p>
                        </blockquote>
                    </td>
                </tr>
            </table>
            <br>

            <p>&nbsp;</p>

            <p align="center">
            <font face="Times New Roman, Times, Serif" size="2"><strong>-7-</strong></font></p>
            <hr align="center" width="100%" noshade size="5">
        </div>
    </body>
</html>
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{"company-data": {"conformed-name": "KANSAS CITY LIFE INSURANCE CO", "cik": "0000054473", "assigned-sic": "6311", "irs-number": "440308260", "state-of-incorporation": "MO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-33348", "film-number": "071240336"}, "business-address": {"street1": "3520 BROADWAY", "city": "KANSAS CITY", "state": "MO", "zip": "64111-2565", "phone": "8167537299X8296"}, "mail-address": {"street1": "3520 BROADWAY", "city": "KANSAS CITY", "state": "MO", "zip": "64111-2565"}}
United
            States
Securities and
            Exchange Commission
Washington, D. C.
            20549
Form
            8-K
Current
            Report
Pursuant to
            Section 13 or 15(d) of
the Securities
            Exchange Act of 1934
Date of Report
            (Date of earliest event reported):
November 13,
            2007
Kansas City Life Insurance Company
(Exact Name of Registrant as Specified in
                            Charter)
Missouri
2-40764
44-0308260
(State of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
3520 Broadway
Kansas
                            City,
                            Missouri
64111-2565
(Address of Principal Executive Offices)
(Zip Code)
Telephone Number:
            (816) 753-7000
Not Applicable
(Former name or former address, if changed since last
                            report)
Check the
            appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
            filing obligation of the registrant under any of the following
            provisions:
o
Written communications pursuant to Rule 425 under the
            Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the
            Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
            14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
            13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
-1-
Item 2.02 Results of Operations and Financial
            Condition.
Included below is a release of financial information
            mailed to stockholders on November 13
, 2007.  It reflects the
            financial condition, in a condensed format, for Kansas City Life Insurance Company as
            of September 30, 2007, and was previously included in the Company's third quarter Form
            10-Q report filed on November 2, 2007.
Message from the President, CEO and Chairman of the
            Board
Kansas City Life Insurance Company reported net income of
            $9.1 million or $0.77 per share for the quarter and $29.2 million or $2.47 per share
            for the nine months ended September 30, 2007.  Net income declined $0.4 million or
            4% for the third quarter and increased $2.4 million or 9% for the nine months, relative
            to the same periods in 2006.
Net income for the third quarter was favorably impacted
            by increases in immediate annuity premiums and investment gains from the sale of real
            estate, along with reduced policyholder benefits and operating expenses. Offsetting
            these favorable results was the impact of reduced net investment income, which resulted
            from both a lower level of invested assets during the current year and lower investment
            expenses in the third quarter of 2006.
The increase in net income in the nine months was
            primarily due to a $4.1 million increase in realized investment gains, accompanied by a
            decline in the amortization of deferred acquisition costs and value of business
            acquired, and reduced operating expenses.
New premiums increased 3% for the third quarter and nine
            month period relative to the prior year. This included increases in individual life,
            immediate annuity, and group life insurance premiums in the third quarter. New deposits
            on policyholder account balances increased 7% for the third quarter, primarily due to
            increases in variable and fixed deferred annuities. New deposits in the nine months
            increased 5%, primarily due to increased sales of variable annuities and universal life
            insurance.
Policyholder benefits and interest credited declined $1.7
            million or 3% in the third quarter relative to the same period in the prior year,
            primarily as a result of lower death benefits and reduced policyholder account
            balances. These same changes resulted in a decline of $2.4 million or 1% in
            policyholder benefits and interest credited for the nine month
            period.
In addition to strong financial results, the Company
            strengthened its product mix with the addition of a new guaranteed minimum withdrawal
            benefit rider during the third quarter. This new product works in tandem with the
            Company's variable annuity product to provide policyholders with certain
            guaranteed levels of income in retirement. The introduction of this new product is
            noteworthy because these types of guaranteed income and benefit products are becoming
            very popular with consumers as they prepare for the uncertainties of providing for a
            secure future. The Company remains focused on increasing its life insurance business
            and an important aspect of successfully doing so is to maintain a competitive array of
            financial protection products that help Kansas City Life agents meet the financial
            security needs of their clients.
We were saddened by the recent passing of Warren J.
            Hunzicker, M.D., a member of the Kansas City Life Board of Directors since 1989. Having
            served as Vice President and Medical Director for Kansas City Life for many years prior
            to his service on the Board of Directors, Dr. Hunzicker contributed greatly to the
            success of Kansas City Life and will truly be missed.
The Kansas City Life Board of Directors approved a
            quarterly dividend of $0.27 per share to be paid November 13, 2007, to shareholders of
            record as of November 8, 2007.
-2-
Consolidated
Balance Sheets
(Thousands)
September 30
2007
December 31
2006
(Unaudited)
Assets
Investments:
Fixed maturity securities
                    available
for sale,
                        at fair value
$
2,623,597
$
2,719,439
Equity securities
                    available
for sale,
                        at fair value
49,256
52,351
Mortgage
                        loans
458,466
472,019
Short-term investments
63,031
44,219
Other investments
187,211
205,743
Total
                        investments
3,381,561
3,493,771
Cash
11,048
3,908
Deferred acquisition
                        costs
220,177
220,595
Value of business
                        acquired
76,146
82,769
Other assets
259,292
256,003
Separate account
                        assets
428,947
400,749
Total assets
$
4,377,171
$
4,457,795
Liabilities
Future policy
                        benefits
$
849,905
$
853,102
Policyholder account
                        balances
2,110,532
2,191,105
Notes
                        payable
8,700
14,700
Income taxes
27,764
35,319
Other
                        liabilities
282,830
278,516
Separate account
                        liabilities
428,947
400,749
Total
                        liabilities
3,708,678
3,773,491
Stockholders'
                        Equity
Common stock
23,121
23,121
Additional paid in
                        capital
29,013
25,852
Retained
                        earnings
776,909
780,892
Accumulated other
comprehensive loss
(35,712
)
(25,118
)
Treasury
                        stock
(124,838
)
(120,443
)
Total stockholder's
                        equity
668,493
684,304
Total liabilities
                        and equity
$
4,377,171
$
4,457,795
See accompanying Notes to
            Consolidated Financial Statements.
-3-
Consolidated
Statements of Income (Unaudited)
(Thousands,
            except share data)
Quarter ended
September 30
Nine
                        Months ended
September 30
2007
2006
2007
2006
Revenues
Insurance
                        revenues:
Premiums
$
43,041
$
43,182
$
131,033
$
131,296
Contract
                        charges
28,058
28,364
83,238
86,217
Reinsurance
                        ceded
(13,193
)
(13,404
)
(40,532
)
(40,739
)
Total insurance
                        revenues
57,906
58,142
173,739
176,774
Investment
                        revenues:
Net investment
                        income
46,869
48,995
142,624
146,731
Realized investment
                        gains
1,339
757
6,501
2,397
Other
                        revenues
2,674
3,330
8,848
8,835
Total
                        revenues
108,788
111,224
331,712
334,737
Benefits and
                        expenses
Policyholder
                        benefits
41,646
42,112
126,644
126,138
Interest credited to
                        policyholder account balances
22,614
23,805
68,119
71,019
Amortization of deferred acquisition
                    costs
and value
                        of business acquired
10,802
10,623
28,400
32,939
Operating
                        expenses
20,638
21,392
65,764
67,186
Total benefits and
                        expenses
95,700
97,932
288,927
297,282
Income before income
                        tax expense
13,088
13,292
42,785
37,455
Income tax
                        expense
3,957
3,766
13,536
10,631
Net
                        Income
$
9,131
$
9,526
$
29,249
$
26,824
Per common
                        share:
Net income, basic and
                        diluted
$
0.77
$
0.80
$
2.47
$
2.25
Cash
                        dividends
0.27
0.27
2.81
0.81
See
            accompanying Notes to Consolidated Financial Statements.
-4-
Consolidated
Statements of Cash Flows (Unaudited)
(Thousands)
Nine Months
                        ended
September 30
2007
2006
Operating
                        Activities
Net cash provided
$
3,716
$
5,165
Investing
                        Activities
Purchases of
                        investments:
Fixed maturity
                        securities
(191,568
)
(200,850
)
Equity
                        securities
(2,871
)
(9,737
)
Mortgage
                        loans
(50,399
)
(45,787
)
Real estate
(2,465
)
(44,068
)
Other investment
                        assets
(21,995
)
-
Sales of
                        investments:
Fixed maturity
                        securities
32,856
83,029
Equity
                        securities
3,481
1,123
Other investment
                        assets
25,013
32,205
Maturities and
                        principal paydowns
of other
                    investments
283,940
241,362
Net additions to
                        property and
equipment
(630
)
(1,097
)
Proceeds from sale
                        of
non insurance affiliate
10,104
-
Net cash
                        provided
85,466
56,180
Financing
                        Activities
Proceeds from
                        borrowings
30,637
55,796
Repayment of
                        borrowings
(36,637
)
(65,045
)
Deposits on
                        policyholder account
balances
154,914
153,437
Withdrawals from
                        policyholder
account balances
(227,562
)
(202,000
)
Net transfers
                        from
separate accounts
11,391
13,186
Change in other
                        deposits
19,725
(12,258
)
Cash dividends to
                        stockholders
(33,275
)
(9,624
)
Net acquisition
                        of
(1,235
)
(2,172
)
treasury stock
Net cash
                        used
(82,042
)
(68,680
)
Increase (decrease) in
                        cash
7,140
(7,335
)
Cash at beginning of
                        year
3,908
12,099
Cash at end of
                        period
$
11,048
$
4,764
See
            accompanying Notes to Consolidated Financial Statements.
-5-
Notes
•
Comprehensive income
                        was $19.7 million and $46.5 million for the third quarters and $18.6
                        million and $13.5 million for the nine months ended September 30, 2007 and
                        2006, respectively. This varies from net income largely due to unrealized
                        gains or losses on investments.
•
Net
                        income per common share was based upon the weighted average number of
                        shares outstanding of 11,842,494 and 11,875,104 for the third quarters and
                        11,851,906 and 11,888,046 for the nine months ended September 30, 2007 and
                        2006, respectively.
•
These
                        interim financial statements are unaudited but, in management's opinion,
                        include all adjustments necessary for a fair presentation of the results
                        and are included in the Company's Form 10-Q as filed with the Securities
                        and Exchange Commission. Please refer to the Company's Form 10-Q and the
                        Company's Annual Report on Form 10-K at www.kclife.com.
•
Certain
                        amounts in prior years have been reclassified to conform with the current
                        year presentation.
-6-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
            duly caused this report to be signed on its behalf by the undersigned thereunto duly
            authorized.
KANSAS CITY LIFE
                        INSURANCE COMPANY
(Registrant)
By:
/s/
William A. Schalekamp
William A. Schalekamp,
Senior Vice President,
General Counsel & Secretary
November 13,
                        2007
(Date)
-7-